Clarification on the Financial Services Compensation
In light of recent economic events, Abbey would like to clarify the position in relation to its authorisations, and how they sit within the context of Santander's UK operations and the application of the Financial Services Compensation Scheme (FSCS).
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £50,000 per total deposit held with a FSA registered institution. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £50,000 each (making a total of £100,000). The £100,000 limit relates to the combines amount in all the eligible depositor’s accounts with the bank.
For investments £48,000 (100% of the first £30,000 and 90% of the next £20,000) is covered by the FSCS and for long term insurance (this includes investment bonds from Life Assurance Companies) 100% of the first £2,000 and 90% of the rest of the claim is covered.
Below is an explanation of Santander Groups authorisations.
Abbey National plc and cahoot
Abbey has its own authorisation. Cahoot, its on-line banking arm, is not a separate legal entity and sits under the Abbey authorisation.
Alliance & Leicester plc (A&L)
Following the acquisition of A&L by Santander, Abbey and A&L will continue to operate under their own separate FSA authorisations. Therefore, the FSCS compensation limits would apply separately in relation to Abbey and A&L depending on which institution the accounts are held.
Bradford & Bingley
All amounts held by savers in Bradford & Bingley have been transferred to Abbey and will sit under Abbey's authorisation.
Cater Allen and James Hay
Cater Allen Private Bank Limited has its own authorisation as do James Hay Wrap Managers Limited and James Hay Administration Company Limited.
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