Calls in Michael Foot's interim review for a probe into offshore jurisdictions' compensation schemes have been backed by an action group, which argues current 'safety nets' are inadequate.
The Landsbanki Guernsey Depositors Action Group (LGDAG) says some current schemes are not designed to cope with "catastrophic" failure. It says offshore centres should overhaul their legal structures to cope with a future event akin to the collapse of the Icelandic banks. In his interim review, Foot says financial centres must reassess their current legal structures to ensure they have the legal framework and institutional infrastructure in place to deal with "major shocks". LGDAG says existing schemes, such as Guernsey's Depositors Compensation Scheme (DCS), which has £100m available...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
