Banking Crisis - Treasury Contents

Supplementary memorandum from the Isle of Man Financial Services Commission

  At the hearing of the Treasury Committee held on 3 February 2009, there were two areas where we agreed to provide additional information.

  The first of these related to an exchange of correspondence with the FSA, in relation to our understanding of some of the limits applied in respect of various exposures. I enclose a copy of two letters of 21 May 2008 for your information (the letter from the FSA does not have a letterhead because it printed as a copy from a computer). Individuals' names have been redacted for reasons of privacy.[187]

  On a second point, we were asked at the Committee hearing about the Derbyshire Building Society. We were informed that the Derbyshire kept the FSA informed of their planned disposal of the Isle of Man subsidiary and that no objections were raised. It is also our understanding that there was no formal regulatory approval process to be followed in relation to the disposal from the perspective of the FSA. Kaupthing Singer & Friedlander (Isle of Man) Ltd, which was regulated by the FSA for mortgage business only, also advised the FSA of the transaction under its relevant obligations at the time.

13 February 2009

187   The letters have been published on the Committee's website. Back

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