The bank said the new UK-based subsidiary, which is Financial Services Authority registered and authorised, has taken over nearly all the former branch’s banking business, including all assets, liabilities, contractual rights, obligations, guarantees and security arrangements, “save for certain staff pension obligations and a small number of loans where we have informed customers individually”.
Being an FSA authorised subsidiary, rather than a UK branch of Cyprus Public Company Limited, means the 55,000 customers using the Bank of Cyprus UK are now eligible for up to £85,000 from the FSCS.
If it had remained a branch, customers would be protected under a similar scheme in Cyprus for up to €100,000, however Cyprus, which has very strong links to Greece, is financial unstable at the moment and is currently considering bailout options for itself.
