10
Bank nEWS
Matthews: ‘security and return’
Abbey Int’l rolls
out new fiveyear
structured
savings account
Abbey International has
launched a five-year structured
savings account,
with interest paid every
six months and linked to
the performance of three
equity indices.
Capital is fully guaranteed
in the Income
Accelerator Account, subject
to the backing of
Abbey parent company
Santander, and investors
have the choice of two
income options.
Under the first option, a
rate of 3.4% gross is paid
semi-annually provided the
closing levels of the indices
are the same or higher
than on their strike date,
measured at the launch of
the account. If one or more
of the indices – FTSE 100,
Dow Jones Euro Stoxx 50
and S&P 500 – have fallen,
no interest is paid.
The second version
pays a return of 2.8% twice
a year, provided the indices
are at the same level or
higher as at launch. If they
have fallen, savers will still
receive 0.5% gross.
The minimum investment
is £25,000 and maximum
£5m.
The account is available
until 28 Aug, 2009.
Jane Matthews, head
of client experience for
Jersey-based Abbey International,
said: “Our
research tells us that clients
are looking for a blend of
security and return in the
current market.”
Go to www.abbeyinternational.com
for more details
Jersey gives green light to
depositors’ compensation...
By Daniel JuDge
Jersey has moved a step
closer to introducing a
depositors’ compensation
scheme after its legislators
voted ‘in principal’ for
the measure.
Such a scheme – now
officially backed by elected
politicians for the first
time – proposes compensation
of up to £50,000
per individual, per Jerseylicensed
bank, regardless
of the residency of the
account holder.
Such a scheme would
be similar to those of
the UK, Isle of Man and
Guernsey, and would
cover individuals holding
joint accounts, meaning a
deposit of £100,000 held by
two people would be completely
compensated by the
scheme. But compensation
will be capped at £100m
over five years, which
critics point out would
probably be exhausted
very quickly were just one
Jersey bank to fail.
Jersey’s scheme was
drawn up in light of findings
of independent consultants
Oxera, which had
been commissioned to
analyse depositor protection
schemes by the Jersey
Government.
The proposed scheme
will be discussed again in
Jersey’s parliament later in
the year. A date for the
debate has yet to be set.
...as bank assets decline in first quarter
Deposits in Jersey’s 46
licensed banks fell by
almost 5% between January
and March, confirming
end-of-year expectations of
Jersey officials and reflecting
declines in other regions.
“The reduction in bank
deposits caused by the
slowdown in global financial
markets was predicted
in our year-end assessment,
but was previously masked
by the effect of currency
movements in the last quarter
of 2008,” said Jersey
Finance chief executive
Geoff Cook.
Banking business
Year No. of Total
banks deposits
’05 47 £184.64bn
’06 46 £189.70bn
’07 48 £212.32bn
’08 47 £206.08bn
Q1 ’09
Source: JFSC
46 £195.91bn
He said there were
nevertheless some “grounds
for cautious optimism” in
the numbers.
In the three months to
31 March, bank deposits
The likely introduction
of the scheme follows
the collapse last year of
Icelandic banks Kaupthing
and Landsbanki, which
respectively had subsidiaries
in the Isle of Man
and Guernsey holding
hundreds of millions of
pounds.
While the Isle of Man
had a depositor compensation
scheme, Guernsey
did not, meaning savers
in Landsbanki Guernsey
have no guaranteed right
of receiving any of their
money back.
Guernsey has since
implemented a scheme,
although it is not retrospective
so does not cover
Landsbanki depositors.
fell by £10.1bn to £195.9bn,
according figures released
by the Jersey Finance Services
Commission (JFSC).
Of the decline in bank
deposits, £1bn was attributed
to adverse foreign
exchange movements.
Cook said the bank
deposit figures were considered
to have “held up
well, given the general
trend around the world to
pay down debt and unwind
positions” which he attributed
to the “complete
absence of any banking
stability issues” on Jersey.
Investec unveils 3% one-year account
Investec Bank Channel
Islands has unveiled a
one-year account paying
3% gross on deposits of
£50,000 or more.
To qualify for the rate,
deposits must be made by
28 Aug. The account, which
pays interest monthly,
matures on 31 Aug, 2010.
Investec Guernsey’s
Laura Preston said: “Our
clients have expressed that
they are happy to lock their
capital away for 12 months
but would like access to
their income in this time.
“The continuing economic
uncertainty means
the Bank of England base
rate could remain low for
some time.
“Given that this account
has a guaranteed interest
rate and guaranteed capital
return, clients can be
assured they will receive
one of the most competi-
tive rates of return available
for offshore sterling
deposits for the next 12
months.”
Preston added that
Investec offers customised
fixed term accounts
for deposits over £100,000
or currency equivalent,
with sterling, euro, dollar,
Australian dollar, Canadian
dollar, yen, South African
rand and Swiss franc all
acceptable currencies.
Aussie expats
targeted by
new Standard
Chart’d product
Standard Chartered Private
Bank has launched an
investment and financial
planning package for
Australian expats based
in the UK and continental
Europe.
Available to Australians
with $1m of investable
assets, the Standard
Chartered Global Australian
Executive Programme
offers a range of services
taking in tax and estate
planning, risk protection,
property advice for buying
Australian property, offshore
multi-currency mortgages,
art and collectible
buying services and concierge
services.
The bank said it also
offered region-specific
asset allocation models and
open architecture wealth
management as part of the
programme.
Peter Flavel, global
head of private banking for
Standard Chartered, said:
“Our research shows that
Australians are increasingly
globally mobile and that
they are staying overseas
for longer periods.
“In response, we have
come up with a programme
tailored to Australian
executives that combines
a complete international
private banking offering
with the many services
Australians need when
they are living offshore for
extended periods.”
The private bank has
also launched a service
aimed at sports professionals,
called the Global
Sports Practice.
The new service will
initially target southern
hemisphere sportspeople
– particularly Australians,
New Zealanders and
South Africans – before
being extended globally
to other markets and particularly
those linked to
countries within Standard
Chartered’s core footprint,
said the bank.
INTERNATIONAL ADVISER [www.international-adviser.com] AuguST 2009
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