The Regulator for Charities in England and Wales

Charities who have invested in Icelandic banks

(24 November 2008)

Re: Clarification of a recent Third Sector article.

In an article published on Third Sector online, 'Darling urged to confirm support for Iceland charities' (20th Nov 2008) there was a suggestion from Maria Miller MP that the Charity Commission has an approved list of banks. This is not correct. The role of the Commission is to offer general advice to trustees on their duty to control and manage a charity's finances and investments. However, we are not able to recommend specific financial services or banks and we have neither approved or issued a list as mentioned by Ms Miller in the article. We do not promote, endorse or approve any banks or financial services. We offer advice, guidance and support to charities but are not able to act in the administration of the charity, except in certain circumstances involving misconduct or mismanagement.

Who is this guidance for?

1. This guidance is for those charities who have invested in the Icelandic banks of Landsbanki, Heritable and Kaupthing Singer and Friedlander.

 2 . The Treasury has made a statement about the position of individuals and organisations who have invested in these banks.

You can view the Treasury statement and our guidance Financial Services Compensation Scheme - what it means for charities here.

How are charities affected by the Treasury statement?

3. The Treasury statement says that arrangements have been put in place to ensure that all retail depositors in the Icelandic banks of Landsbanki, Heritable and Kaupthing Singer and Friedlander will receive their money in full.

4. Retail depositors includes those charities who are:

  • a body corporate (which includes a company, industrial and provident society, Royal Charter body, and statutory corporation) which has two or more of the following:
      • £6.5 million or less turnover;
      • £3.26 million or less balance sheet total;
      • 50 or less employees;
  • an unincorporated association which has assets of £1.4 million or less.

5 Charities who have invested in Icelandic banks, and who do not fall into the description of retail depositors, appear to be classified as wholesale depositors. We will update this guidance as further information becomes available about the position of these depositors.

Let us know if you are affected

6. Any charities who have invested in these Icelandic banks are encouraged to let the Charity Commission know by email so that the aggregate investment by charities in these banks can be assessed.

7.  Please let us know:

  • the name of the charity and its registration number;
  • the amount of investment;
  • the name of the Icelandic bank it is invested in; and based on the analysis above
  • whether the charity is a retail or a wholesale depositor.

email us at: enquiries@charitycommission.gsi.gov.uk