The Individual Savings Account (Amendment No. 2) Regulations 2009

Amendments to the Individual Savings Account Regulations 1998

5.  For regulation 5A(1) substitute—

“Treatment of sums held in accounts managed by Icesave Bank

5A.— (1) This regulation applies if—

(a) at 8th October 2008, an account investor had an investment in an account (“the Icesave account”) for which the account manager was Landsbanki Islands hf (trading as Icesave);

(b) compensation is paid in respect of that investment by (or through) the Financial Services Compensation Scheme(2); and

(c) the account investor receives from the Financial Services Compensation Scheme a certificate containing the following information—

(i) the account investor’s full name;

(ii) his or her permanent address, including postcode;

(iii) his or her date of birth;

(iv) his or her national insurance number (if any);

(v) the Icesave account number;

(vi) the date on which the account was suspended;

(vii) the amount in the account (capital and interest) at the date of suspension;

(viii) the date of the first subscription (if any) to the account in the year 2008-09; and

(ix) the aggregate of the subscriptions made to the account in the year 2008-09 on or before 8th October 2008 (“current year subscriptions”).

(2) Where this regulation applies, the account investor may, not later than 5^th October 2009, make a single subscription to an account held by him or her with another account manager (“the receiving account”), giving the certificate to the account manager, in accordance with the following paragraphs.

(3) Where the subscription to the receiving account is made during the year 2008-09, the amount subscribed under this regulation may not exceed:

• X minus Y

• where X is the closing balance in the Icesave account (see paragraph (1)(c)(vii)), and

• Y is the amount (if any) by which the aggregate of—

(a) the current year subscriptions (if any) made to the Icesave account (see paragraph (1)(c)(ix)), and

(b) the subscriptions (if any) made to the receiving account by the account investor in the year 2008-09 (ignoring the subscription made under this regulation),

would otherwise exceed the subscription limit for the year 2008-09 in regulation 4(3).

Paragraphs (4) to (6) shall also apply to a subscription made under this regulation during the year 2008-09.

(4) The subscription made under this regulation shall only count towards the subscription limit in regulation 4(3) to the extent that the current year subscriptions (if any) made to the Icesave account exceed Y (or where there is no amount for Y, exceed nil).

(5) Where the receiving account is a stocks and shares account—

(a) the references in paragraphs (3) and (4) to the subscription limit in regulation 4(3) shall be read as references to the subscription limit in regulation 4(2); and

(b) the current year subscriptions (if any) made to the Icesave account shall be treated, for all purposes including regulation 31(3)(c), as if they had been made to the stocks and shares account, and accordingly shall not count towards the cash subscription limit in regulation 4(3).

(6) The account manager for the receiving account must—

(a) in the case of a subscription made under this regulation to the account in the year 2008-09, treat the subscription in the same way as an account transferred from another account manager to him during the year 2008-09; and

(b) retain either the certificate mentioned in paragraph (2), or a copy of it.

(7) Where the subscription to the receiving account is made during the year 2009-10 (but not later than 5th October 2009), the amount subscribed under this regulation—

(a) may not exceed X (see paragraph (3)), and

(b) shall not count towards the subscription limits in regulation 4(2) or (3),

and paragraph (6) (omitting sub-paragraph (a)) shall also apply to that subscription.”

(1)

Regulation 5A was inserted by regulation 3 of S.I. 2007/2119.

(2)

Established by the Financial Services Authority pursuant to section 213 of the Financial Services and Markets Act 2000.