The High Court of Justice has appointed Ernst & Young as administrators of Kaupthing Singer & Friedlander, the UK arm of Icelandic bank Kaupthing.

The High Court, with the Financial Services Authority, has appointed Maggie Mills, Tom Burton, Alan Bloom and Patrick Brazzill, of Ernst & Young.

It said the administration was necessary because of Kaupthing Singer & Friedlander’s financial position and to protect retail depositors and maintain the stability of the UK financial system.

On behalf of the joint administrators, Mills said: ‘We would like to stress that all retail savers’ deposits are properly protected. All retail deposits with Kaupthing which relate to the internet-based Edge accounts have been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK.

‘ING Direct is working to rapidly ensure that it is business as normal for all customers.

;All retail deposits which do not relate to Edge accounts will also be paid in full through the FSCS, but have not been transferred to ING Direct.

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.’