On Air Saturday Breakfast Club Kim Quine | 6:00am - 8:30am

Pension provider seeks urgent clarification

One of the United Kingdom's largest pension providers has written to the Manx Government asking for reassurances for its customers.

AJ Bell says it had significant amounts of cash tied up in Kaupthing Singer and Friedlander for self- invested personal pensions customers and isn’t sure whether it will be entitled to any compensation after the bank collapsed.

It is also warning that if the £100 million thought to be invested in similar pension schemes in the Island isn’t protected, companies may take their money elsewhere.

Many pension providers would have opened accounts as trustees, meaning thousands of people may not be eligible for individual compensation under the regulations.

AJ Bell says even if an account is in the trustee’s name, investors should still get their money back under the depositors' compensation scheme.

The company’s managing director Richard Taylor has written to Treasury asking for urgent clarification.

He warns if he doesn’t get confirmation from the government, his company will advise its customers and advisers of the fact so they can remove their deposits.

And he says the government’s position on the pension schemes could influence whether people put their money into the Isle of Man in the future.

More from Isle of Man News