Treasury 'not compensating charities following KSF collapse'
Charities
25th June 2009
The Treasury has announced that it is not going to provide compensation for charities affected by the collapse of Icelandic banks.
Many UK organisations will be hit by the decision, with some at risk of losing thousands of pounds worth of investments.
The Save our Savings (SOS) action group is now considering taking the government to judicial review over the issue after the Treasury select committee called on the government to provide compensation, which may interest charity insurance customers.
Peter Hepburn, co-chairman of SOS and chief executive of Cats Protection, accused ministers of "effectively turning its back on charities", adding: "Society relies on charities for help in so many ways and sadly this decision seriously compromises this vital work."
The coalition of 30 charities who had funds deposited in Icelandic bank Kaupthing, Singer and Friedlander was responding to the Treasury response to the select committee's report.
Research by CAF Bank has suggested that nearly one third of UK charities has opted to move some or all of the money they have invested to another bank in the wake of the financial crisis.
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