Originally published in Captive Review, Guernsey
Report, 2009-10, October 2009
Konrad Friedlaender of Carey Olsen's Fiduciary Law
Group outlines Guernsey's policyholder protection scheme and
the advantages it can bring.
The comfort depositors and other investors have customarily
taken, not only from the security ostensibly provided by banks but
also from their reliance on the financial strength of large
financial institutions generally, has been given a severe jolt by
the turmoil in financial markets over the past 18 months. The run
on Northern Rock, the failure of Lehman Brothers and the severe
difficulties experienced by the world's largest insurer, AIG,
has caused investors to re-visit a host of financial instruments,
deposits and securities and the protection they provide against
financial loss in the event of failure of the institution.
