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Clarification on the Financial Services Compensation Scheme (FSCS).

In light of recent economic events, Alliance & Leicester would like to clarify the position in relation to its authorisations, and how they sit within the context of Santander's UK operations and the application of the Financial Services Compensation Scheme (FSCS).

Deposits – Savings and Current Accounts

The first £50,000 of each customer’s deposits held with each separate banking authorisation is 100% covered by the Financial Services Compensation Scheme. If two people hold a joint account, each person would be covered for up to £50,000 – that is a total of £100,000.

Investments

For investments, £48,000 (100% of the first £30,000 and 90% of the next £20,000) is covered by the FSCS. For long term insurance (this includes investment bonds from Life Assurance companies) 100% of the first £2,000 and 90% of the rest of the claim is covered.

The following explains Santander Group’s main UK authorisations:

Abbey National plc and cahoot

Abbey has its own authorisation. Cahoot, its on-line banking arm, is not a separate legal entity and sits under the Abbey authorisation.

Alliance & Leicester plc (A&L)

Following the acquisition of A&L by Santander, Abbey and A&L will continue to operate under their own separate banking authorisations. Therefore, Abbey and A&L each would have separate FSCS compensation limits.

Bradford & Bingley

All amounts held by savers in Bradford & Bingley have been transferred to Abbey and will sit under Abbey's authorisation.

Cater Allen and James Hay

Cater Allen Private Bank Limited has its own authorisation as do James Hay Wrap Managers Limited and James Hay Administration Company Limited.