In essence, account holders are to be paid the principal sum and interest accrued up to and including 7 October 2008 as compensation.
ISA certificates should follow by post to ISA investors.
This will enable them to reinvest some or all of the ISA money with another ISA provider by 5 April 2009.
Although Icesave ISAs were cash ISAs, individuals may transfer money saved in previous and current tax years from cash ISAs into stocks and shares ISAs if they wish.
Individuals will be able to subscribe additional funds to their reinvested ISA, subject to the usual subscription limits.
So if the Icesave certificate shows 2008-09 subscriptions of £2,000 the investor can subscribe a further £1,600 (in addition to the sum shown on the certificate) before 5 April 2009.
Full details are contained in the bulletin.
