European Union (Deposit Guarantees Schemes) Regulations 2015
Source: Iris Oifigiúl 2015-11-20 01806-01806

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paragraphs: (1) These Regulations may be cited as the European Union (Deposit Guarantee Schemes) Regulations 2015.
(2) These Regulations shall come into operation on 20 November 2015.
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paragraphs: (1) These Regulations shall apply to the following:
(a) statutory deposit guarantee schemes;
(b) contractual deposit guarantee schemes that are officially recognised as deposit guarantee schemes in accordance with Regulation 8(1);
(c) institutional protection schemes that are officially recognised as deposit guarantee schemes in accordance with Regulation 8(2);
(d) credit institutions affiliated to the schemes referred to in subparagraph (a), (b) or (c).
(3) Without prejudice to Regulation 29(8), (9) and (12), the following schemes shall not be subject to these Regulations:
(a) contractual schemes that are not officially recognised as deposit guarantee schemes, including schemes that offer an additional protection to the coverage level laid down in Regulation 11(1);
(b) institutional protection schemes that are not officially recognised as deposit guarantee schemes.
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paragraphs: (1) In these Regulations—
(a) in the case of a bank, a bank authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 9 of the Act of 1971,
(b) in the case of a building society, a building society authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 17 of the Building Societies Act (No. 17 of 1989), or
(c) in the case of a credit union, a credit union registered within the meaning of the Credit Union Act 1997 (No. 15 of 1997) or deemed to be so registered by virtue of section 5(3) of that Act;
(a) the authority designated under Regulation 4 of the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ), or
(b) the European Central Bank, with regard to specific tasks conferred on it by Council Regulation (EU) No 1024/2013 of 15 October 20132 ;
(a) the competent authority makes a determination mentioned in paragraph (a), or
(b) the Court makes a ruling mentioned in paragraph (b) or (c),
(a) its existence can only be proven by a financial instrument (as defined in Article 4(17) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 20043 ) other than where it is a savings product which is evidenced by a certificate of deposit made out to a named person and which existed in the Member State concerned on 2 July 2014,
(b) its principal is not repayable at par, or
(c) its principal is only repayable at par under a particular guarantee or agreement provided by the credit institution or a third party;
(a) opened in the name of 2 or more persons, or
(b) over which 2 or more persons have rights that are exercised by means of the signature of one or more of those persons;
(a) consists of low-risk assets, and
(b) is unencumbered by any third-party rights and is at the disposal of the deposit guarantee scheme;
(a) the competent authority has determined that, for the time being, the credit institution concerned appears to be unable, for reasons which are directly related to its financial circumstances, to repay the deposit and has no current prospect of being able to do so,
(b) a court has appointed a liquidator or examiner to the credit institution, or
(c) a court has made, for reasons which are directly related to the credit institution’s financial circumstances, any other ruling that has the effect of suspending depositors’ ability to make claims against it;
(2) Shares in building societies or credit unions apart from those of a capital nature mentioned in subparagraph (b) of Regulation 10(1) shall be treated as deposits.
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paragraphs: (1) The Bank is designated as the authority in the State that carries out the functions and duties of a designated authority for the purposes of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 20141.
(2) The designated authority shall supervise deposit guarantee schemes on an ongoing basis as to their compliance with these Regulations.
(3) The designated authority may require, at any time and upon its request, from credit institutions all the information necessary to prepare for a repayment of depositors, including markings under Regulation 10(2) and, where required, the credit institutions shall comply with any such requirement.
(4) The designated authority shall ensure the confidentiality, and protection, of data pertaining to depositors’ accounts.
(5) The processing of the data referred to in paragraph (4) shall be carried out in accordance with the Data Protection Acts 1988 and 2003.
(6) The designated authority shall be subject to the requirements of professional secrecy in accordance with Article 70 of Regulation (EU) No 1093/2010 when exchanging information with the European Banking Authority.
(7) The designated authority shall ensure that its deposit guarantee scheme has in place sound and transparent governance practices and shall produce an annual report on its activities.
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paragraphs: (1) The designated authority shall perform stress tests of their systems.
(2) Subject to paragraph (3), the stress tests referred to in paragraph (1) shall take place at least every 3 years and more frequently where considered appropriate by the designated authority.
(3) The first stress test under this Regulation shall take place not later than 3 July 2017.
(4) The competent authority or resolution authority shall ensure that the designated authority is informed as soon as possible in the event that either becomes aware of matters in a credit institution that are likely to give rise to the intervention of the designated authority.
(5) The designated authority shall use the information necessary to perform stress tests of their systems only for the performance of those tests and shall keep such information no longer than is necessary for that purpose.
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paragraphs: (1) The competent authority shall be the relevant administrative authority for the purposes of paragraph (a) of the definition of “unavailable deposit”.
(2) The competent authority, the designated authority and the resolution authority shall cooperate with each other and exercise their powers in accordance with these Regulations.
(3) The competent authority shall make the determination referred to in the definition of “unavailable deposit” as soon as possible and, in any event, not later than 5 working days after first becoming satisfied that a credit institution has failed to repay deposits which are due and payable.
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paragraphs: (1) The designated authority shall maintain a deposit guarantee scheme in the State.
(2) Paragraph (1) shall not preclude the merger of deposit guarantee schemes in the State and other Member States or the establishment of a cross-border deposit guarantee scheme.
(3) Prior to a merger referred to in paragraph (2) taking place, the written approval of the competent authority and the designated authority is required.
(4) Cross-border deposit guarantee schemes shall be supervised by representatives of the designated authorities of the Member States where the affiliated credit institutions are authorised or registered, as the case may be.
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paragraphs: (1) The designated authority may recognise a contractual scheme, as referred to in Regulation 2(1)(b), as a deposit guarantee scheme where that contractual scheme complies with this Part.
(2) The designated authority may recognise an institutional protection scheme as a deposit guarantee scheme where that institutional protection scheme fulfils the criteria laid down in Article 113(7) of the Union Capital Requirements Regulation and complies with these Regulations.
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paragraphs: (1) An authorised credit institution shall not take deposits unless it is a member of a scheme maintained in the State pursuant to Regulation 7(1).
(2) Where a credit institution does not comply with the obligations incumbent on it as a member of a deposit guarantee scheme, that credit institution or the designated authority, where it becomes aware of the non-compliance, shall without delay notify the competent authority and, in cooperation with the designated authority, the competent authority, upon notification being made to it under this paragraph, shall promptly take all appropriate measures including the imposition of penalties to ensure that the credit institution complies with its obligations.
(3) Where the measures taken under paragraph (2) fail to secure compliance on the part of the credit institution concerned, the designated authority may, subject to national law and the express consent of the competent authority, give not less than one month’s notice in writing to the credit institution concerned of its intention to exclude the credit institution from membership of the deposit guarantee scheme.
(4) Deposits made before the expiry of the notice period referred to in paragraph (3) shall continue to be fully covered by the deposit guarantee scheme.
(5) Where, on expiry of the notice period referred to in paragraph (3), the credit institution has not complied with its obligations, the designated authority shall exclude the credit institution from membership of the deposit guarantee scheme.
(6) Deposits held on the date on which a credit institution is excluded from membership of the deposit guarantee scheme pursuant to paragraph (5) shall continue to be covered by the deposit guarantee scheme.
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paragraphs: (1) The following shall be excluded from any repayment by the designated authority under a deposit guarantee scheme:
(a) subject to Regulation 12(4) and (5), deposits made by other credit institutions on their own behalf and for their own account;
(b) own funds, as defined in point (118) of Article 4(1) of the Union Capital Requirements Regulation;
(c) deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering, as defined in section 2(1) of the Act of 2010;
(d) deposits by financial institutions;
(e) deposits by investment firms, as defined in Regulation 3(1) of the European Communities (Markets in Financial Instruments) Regulations 2007 ( S.I. No. 60 of 2007 );
(f) deposits the holder of which has never been identified pursuant to Part 4 of the Act of 2010, when they have become unavailable;
(g) deposits by insurance undertakings and by reinsurance undertakings as referred to in Article 13(1) to (6) of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 20096 ;
(h) deposits by collective investment undertakings;
(i) deposits by public authorities;
(j) debt securities issued by a credit institution and liabilities arising out of own acceptances and promissory notes;
(k) deposits by a pension scheme or retirement fund (other than a small self-administered pension scheme).
(2) Credit institutions shall mark eligible deposits in a way that allows the immediate identification of such deposits.
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paragraphs: (1) In the event of deposits being unavailable, the coverage level for the aggregate deposits of each depositor is €100,000.
(2) Without limitation to paragraph (1) and subject to paragraph (3), certain deposits specified in paragraph (4) are protected above the coverage level mentioned in paragraph (1) (in this Regulation referred to as a “temporary high balance”) up to a limit of €1 million for 6 months after that amount has been credited or from the moment when such deposits become legally transferable.
(3) Deposits protected in the circumstances mentioned in paragraph (4)(b)(ii) shall not be subject to the limits set out in paragraph (2) during the 6 month period referred to in paragraph (2).
(4) In order to qualify as a temporary high balance, a part of an eligible deposit in excess of the coverage limit provided for in paragraph (1) must meet at least one of the following criteria:
(a) it comprises—
(i) monies deposited in preparation for the purchase of a private residential property (or an interest in a private residential property) by the depositor,
(ii) monies which represent the proceeds of sale of a private residential property (or an interest in a private residential property) of the depositor, or
(iii) monies which represent the proceeds of an equity release by the depositor in a private residential property;
(b) it comprises sums paid to the depositor in respect of—
(i) benefits payable under an insurance policy,
(ii) a claim for compensation for personal (including criminal) injury,
(iii) State benefits paid in respect of a disability or incapacity,
(iv) a claim for compensation for wrongful conviction,
(v) a claim for compensation for unfair dismissal,
(vi) redundancy (whether voluntary or compulsory),
(vii) the depositor’s marriage, judicial separation or civil partnership,
(viii) the depositor’s divorce or dissolution of his or her civil partnership, or
(ix) benefits payable on retirement;
(c) it comprises sums paid to the depositor in respect of—
(i) benefits payable on death,
(ii) a claim for compensation in respect of a person’s death, or
(iii) a legacy or other distribution from the estate of a deceased person;
(d) it is held in an account on behalf of a depositor in his or her capacity as personal representative of a deceased person for the purpose of realising and administering the deceased’s estate;
(5) The designated authority may decide to make repayments in euro or the currency of the Member State where the account is located.
(6) The designated authority shall notify the currency of repayment to depositors concerned.
(7) Where accounts were maintained in a currency different from that of a repayment, the exchange rate used shall be the exchange rate on the decision date.
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paragraphs: (1) The limit referred to in Regulation 11(1) shall apply to the aggregate deposits placed with the same credit institution irrespective of—
(a) the number of deposits,
(b) the currency of the deposits, and
(c) the location of the deposits within the Union.
(2) The share of each depositor in a joint account shall be taken into account in calculating the limit referred to in Regulation 11(1) but, in the absence of special provisions that override the standard arrangement of splitting equally, a joint account shall be divided equally among the depositors.
(3) A deposit to which 2 or more persons are entitled (whether or not in equal shares) as members of a partnership, association or grouping of a similar nature, without legal personality, shall be treated as a single deposit.
(4) Where a depositor is not absolutely entitled to the sums held in an account, the person that is absolutely entitled shall be covered by the guarantee, provided that he or she has been identified or is identifiable before the decision date.
(5) Where several persons are absolutely entitled to the sums held in an account, the share of each under the arrangements subject to which the sums are managed shall be taken into account when the limit provided for in Regulation 11(1) is calculated.
(6) The reference date for the calculation of the repayable amount shall be the decision date.
(7) Subject to paragraph (8), liabilities of a depositor against the credit institution concerned shall not be taken into account when calculating the repayable amount.
(8) To the extent that set-off is possible under the statutory and contractual provisions governing the contract between a credit institution and a depositor, liabilities of the depositor to the credit institution may be taken into account when calculating the repayable amount where they have fallen due on or before the decision date.
(9) Credit institutions shall inform depositors in writing prior to the conclusion of any contract where any liabilities towards the credit institution are taken into account when calculating the repayable amount.
(10) The designated authority may at any time, require credit institutions to inform them in writing of the aggregated amount of eligible deposits for every depositor.
(11) Subject to the limit referred to in Regulation 11(1), interest on deposits which has accrued until, but has not been credited at, the decision date shall be included in the repayable amount.
(12) Where a credit institution operates under different trademarks, as defined in Article 2 of Directive 2008/95/EC of the European Parliament and of the Council of 22 October 20087 , that credit institution shall inform depositors that a connected credit institution operates under such trademarks and that the coverage level laid down in Regulation 11(1) and (2) applies to the aggregated deposits that the depositor holds with the credit institution.