London Scottish Bank was placed into administration last night with the FSA announcing it would be prevented from accepting further deposits.
The Manchester-based bank, which has approximately 10,000 depositors, also provided loans principally through door-to-door collection as well as mortgage business including 'right-to-buy' under local authority housing sales. However, the FSA ruled yesterday it no longer met its threshold conditions for authorization. Ernst and Young has been appointed as administrator. Eligible retail depositors will be compensated through the Financial Services Compensation Scheme, with HM Treasury protecting balances above the current UK deposit limit of £50,000. The FSCS will administer the full payou...
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
