Dear Claimant
Kaupthing Singer & Friedlander (Isle of Man) Limited - In Liquidation ("KSFIOM")
Introduction
On 27 May 2009, the Isle of Man Court placed KSFIOM into liquidation, and on the same day, the Scheme
Manager of the Isle of Man Depositors Compensation Scheme ("DCS") declared KSFIOM to be in default and activated
the DCS for depositors of the bank.
Full details of the DCS can be found on www.dcs.im. This letter is
intended to give you general guidance on how to start the claim process if you wish to do so.
Who can claim? The named account holders, except for certain specified parties - primarily those
connected to KSFIOM, are eligible for compensation. The broad categories are:
1 Individuals may claim 100% compensation on aggregated deposits up to a maximum of
£50,000.
2 Joint personal account holders may claim 100% compensation on aggregated deposits
up to a maximum of £50,000 each.
3 All other account holders may claim 100% compensation on aggregated deposits up to
a maximum of £20,000.
4 In certain circumstances, persons with interests within clients' accounts and trusts
may be treated as individual claimants.
If you have already received payments from one or both of the Early Payment Schemes operated by the Treasury of the Isle
of Man, the amounts you have received will be deducted from any compensation and/or liquidation payments due to
you.
By claiming from the DCS you will receive compensation payments up to the maximum you are entitled to
as soon as the Scheme Manager is able to make payments. In return, you will be required to assign your existing
full rights in the liquidation to the Scheme Manager to enable it to pay compensation sums to you and thereafter
recover the amounts of compensation paid. As soon as the compensation is recovered, any additional distributions
from the liquidation will be redirected to you immediately.
If you choose to claim from the DCS, and therefore
assign your rights, it will not be necessary for you to make a claim directly in the liquidation as well - the
Scheme Manager will do so on your behalf.
How do I claim?
In order to process claims as quickly as possible, the DCS claims mechanism is primarily electronic. You will need to go
to http://www.dcs.im and follow the instructions on how to start the claim process. This site will be available
for submissions as soon as possible but in any event by 10 June 2009. Updates on the availability of claims submission
site will be posted on http://www.dcs.im. You will need three things to enable you to initiate a claim:
2 At least one account number of an account that you held at KSFIOM
3 The name of the account
If you do not have any access to the internet and/or do not have email, you should write to the Scheme Manager at the above
address stating your name and account details (number(s) and title) and forms will be sent to you by mail.
Before
making any decision to claim in the DCS you should read the full details of the DCS, the Claim Form and the Guidance
Notes, and consider taking professional advice on whether to claim in the DCS or stay outside and receive all payments
directly from the liquidation of KSFIOM.
In order to be assured of inclusion in the first payment of compensation
by the Scheme Manager, you will need to have completed the claim form online and returned the signed printed version
by 30 June 2009. Forms requested by post will also need to be completed and returned by this date. Please note
that late submission will not invalidate any entitlement you may have at this stage but may delay payment.
Communication
The DCS website will be the main source of information about the progress of claims, expected payment dates and general information
about the progress of the DCS. It may be found at http://www.dcs.im. A recorded helpline is available on +44 (0)1624606000
and emails may be sent to
dcs@kpmg.co.im.
Yours faithfully,
Mike
Fayle
Agent to the Scheme Manager