Kaupthing Singer & Friedlander, the UK arm of Icelandic bank Kaupthing, has made 74 redundancies after being placed into administration two weeks ago, but will continue to operate as a business and occupy its office space.

A spokeswoman for administrator Ernst & Young confirmed that the redundancies were mainly in the investment banking division. Kaupthing SF employed 817 people at the end of 2007.

Kaupthing has offices in London, Glasgow, the Isle of Man, Surrey and Birmingham.

The spokeswoman said: ‘The space is still being occupied.’

She said it was too soon to tell what would happen to the various arms of the business.

In a statement, the joint administrators Maggie Mills, Tom Burton, Alan Bloom and Patrick Brazzil, said: ‘The Administrators will be seeking to find purchasers for, and will continue to manage, the remainder of KS&F’s business and loan book to maximise recovery for creditors, including the FSCS and the Treasury.’

All retail deposits were protected, the admininstrators said.