The Silicon Valley Bank UK Limited Compensation Scheme Order 2025
On 28th January 2025, the UK government announced the Silicon Valley Bank UK Limited Compensation Scheme Order 2025, a new piece of legislation designed to protect depositors of the failed bank.
Background
Silicon Valley Bank UK Limited (SVB UK) was a subsidiary of Silicon Valley Bank, a US-based bank that specialized in providing financial services to technology and innovation companies. On 11th March 2023, SVB UK was declared insolvent by the Bank of England and placed into special administration. The failure of SVB UK had a significant impact on depositors, many of whom were small businesses and individuals.
The Compensation Scheme
The Silicon Valley Bank UK Limited Compensation Scheme Order 2025 establishes a compensation scheme for depositors of SVB UK. The scheme will provide compensation of up to £85,000 per depositor, in line with the UK’s Financial Services Compensation Scheme (FSCS) limit.
Eligibility
To be eligible for compensation under the scheme, depositors must have had a deposit account with SVB UK on the date of insolvency. This includes:
- Individuals
- Businesses
- Charities
- Local authorities
How to Claim
Claims for compensation under the scheme can be made through the FSCS. Depositors can submit their claims online or by post. The FSCS will provide guidance on the claims process.
Timescale
The scheme will be open for claims for a period of six months from the date it comes into effect. Depositors are advised to submit their claims as soon as possible.
Other Provisions
The order also includes provisions for:
- The appointment of a compensation manager to oversee the scheme
- The payment of compensation in stages
- The recovery of compensation from the assets of SVB UK
Conclusion
The Silicon Valley Bank UK Limited Compensation Scheme Order 2025 is a welcome step towards protecting the depositors of SVB UK. The scheme will provide compensation of up to £85,000 per depositor, and will be administered by the Financial Services Compensation Scheme. Depositors are advised to submit their claims as soon as possible.
The Silicon Valley Bank UK Limited Compensation Scheme Order 2025
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UK New Legislation a new article on 2025-01-28 03:04 titled “The Silicon Valley Bank UK Limited Compensation Scheme Order 2025”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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