1 Horse Guards Road, 
Information Rights Unit 
London. 
 
SW1A 2HQ 
Tel: 020 7270 4558 
 
Fax: 020 7451 4861 
Ian Davison 
[HM Treasury request email]  
 
 www.hm-treasury.gov.uk 
By email to: 
 
Request-10262-ba41ce29@whatdo 
Our ref:  
IRU/9/312 
theyknow.com 
 
   
 
 
11 May 2009 
Dear Mr Davison, 
 
    
FREEDOM OF INFORMATION ACT REQUEST: KAUPTHING, SINGER & 
FRIEDLANDER  
 
Thank you for your email of 7 April 2009 asking for information under the Freedom of 
Information Act 2000 (‘the Act’).  We received your request on 8 April. You asked for: 
 
‘… precise details of the basis upon which Dave Whelan  was refunded his 
considerable deposit with KSF UK.   
 
If a claim was made for compensation and payment was made through the 
FSCS, on what basis precisely.’ 
 
Information relating to the financial affairs of individuals is  personal data.  The 
Treasury considers that to reveal whether or not they hold information in relation to 
the financial affairs of Mr Whelan, or any other individual, would breach the first data 
protection principle â€“ that information be processed fairly and lawfully. In accordance 
with section 40(5)(b)(i) of the Freedom of Information Act we are therefore unable to 
confirm or deny whether the Treasury holds information falling within the scope of 
your request.   
 
While we are unable to confirm or deny whether or not details are held in relation to 
particular individuals we are happy to explain the process for dealing with claims from 
depositors of Kaupthing Singer & Friedlander (KSF).    
 
KSF  is a UK-based banking subsidiary of the Icelandic bank Kaupthing and is 
regulated by the Financial Services Authority (FSA). On 8th October 2008 the FSA 
determined that KSF no longer met its threshold conditions, and was unlikely to be 
able to continue to meet its obligations to depositors. The FSA, in the exercise of its 
regulatory functions, concluded that KSF was in default for the purposes of the 
Financial Services Compensation Scheme (FSCS). The Treasury has used the 
Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial 
stability and provides protection and continuity for depositors.  
 
KSF’s Edge deposit business has been transferred to ING Direct, a wholly-owned 
subsidiary of ING Group. The transfer of the retail deposit accounts has been backed 
by HM Treasury and the FSCS.  
 
 
 

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Following due legal process, the remainder of KSF’s business was put into 
administration.  Any retail depositors eligible to claim under the FSCS whose 
accounts have not been transferred to ING Direct are being paid out in full through 
the FSCS.  
 
The FSCS is independent of the Treasury and has sole responsibility for determining 
whether a depositor meets the necessary eligibility criteria under its rules. The FSCS 
is also responsible for determining the priority with which eligible claimants are paid 
out.  
 
The FSCS  has sent out compensation claim forms to all KSF savers who did not 
transfer to ING Direct that they have records for. The FSCS claims teams have been 
processing the application forms received back from savers. The priority is to pay 
eligible retail depositors their compensation as quickly as possible after receiving a 
completed application. Eligible depositors of KSF have been getting their money 
back. However, as indicated above, we cannot confirm or deny whether applications 
have been received or processed for particular individuals. 
 
Timeliness of this response  
 
You wrote to us today suggesting that a response to this request was late.  However, 
the 20-day limit  for responses  set in the Freedom of Information  Act  applies in 
relation to working days.  In  this instance  there have been three  bank holidays in 
period since you made your request, thus the final reply date has moved back to take 
account of this.   
 
If you have any queries about this letter, please contact us at the email account given 
in the header to this letter.  It would help us, if you could remember to quote the IRU 
reference number (also in the header) in any future communications.   
 
Yours sincerely, 
 
 
Information Rights Unit 
For HM Treasury 
 
 
 
Your Rights to Complain under the FOI Act 
 
If you are not happy with this response, you may request a review by writing to HM Treasury, Information 
Rights Unit, 2/S2, 1 Horse Guards Road, London SW1A 2HQ. Email [email address]  
 
Any review request must be made within 2 months of the date of this letter.   
It would assist our review if you set out which aspects of the reply concern you and why you are 
dissatisfied.   
 
If you are not content with the outcome your complaint, you may apply directly to the Information Commissioner 
for a decision. Generally, the ICO cannot make a decision unless you have exhausted the complaints 
procedure provided by the Treasury. The Information Commissioner can be contacted at: The Information 
Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF. 
 
 
 
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