Source: http://www.prarulebook.co.uk/rulebook/Content/Part/303781/22-10-2019
Timestamp: 2020-07-14 15:36:37
Document Index: 541543542

Matched Legal Cases: ['art 4', 'art 4', 'Art. 2', 'Art. 2', 'Art. 2', 'Art. 2', 'art 4', 'Art. 2', 'Art. 2', 'art 4', 'Art. 4', 'Art. 6', 'Art. 6', 'Art. 7', 'Art. 7', 'Art. 7', 'Art. 7', 'Art. 7', 'Art. 6', 'Art. 8', 'Art. 8', 'Art. 8', 'Art 8', 'Art. 8', 'Art. 5', 'Art 5', 'Art 7', 'Art 4', 'Art. 4', 'art 4', 'art 4', 'art 4', 'Art. 16', 'Art. 19', 'Art. 16', 'Art. 16', 'Art. 16', 'Art. 16', 'Art. 16', 'Art. 16', 'Art. 14', 'Art.16', 'Art. 16', 'Art. 4', 'Art. 4', 'Art. 4', 'Art. 8', 'Art. 4', 'Art. 9', 'Art. 4', 'Art. 14', 'Art. 14', 'Art. 14', 'Art. 9', 'Art. 10', 'Art. 11', 'Art. 10', 'Art. 10', 'Art. 10', 'Art. 10', 'Art. 10', 'Art. 13', 'Art. 13', 'Art. 10', 'Art. 14', 'art 4', 'art 4', 'art 4', 'Art. 19', 'Art. 16', 'art 4']

Depositor Protection - Prudential Regulation Authority
(2) UK banks;
(3) credit unions;
(4) Northern Ireland credit unions;
(5) building societies; and
(6) an overseas firm that:
Chapter 23 applies to a UK branch of an incoming firm that is a credit institution.
This Part also applies to a firm which used to have a Part 4A permission to accept deposits but which has ceased to have a Part 4A permission to accept new deposits, or which is subject to a requirement not to accept new deposits, and which is not a member of a non-UK scheme.
Unless otherwise stated, in this Part, the following definitions shall apply:
available financial means
means cash, deposits and low-risk assets which can be liquidated within a period not exceeding seven business days.
[Note: Art. 2(1)(12) of the DGSD]
means one of the classes to which the FSCS allocates levies in accordance with the rules of the compensation scheme.
means the class which consists of DGS members.
class A tariff base
has the meaning given in 43.1.
has the meaning given in the Dormant Account Scheme Part.
means a valid claim made in respect of a civil liability owed by a DGS member to the claimant.
means the date on which a determination is made by the PRA, the FSCS or a judicial authority that deposits held by a DGS member are unavailable deposits such that the DGS member is in default.
compensation leaflet rules
means 23.7(2), 23.8(2) and 23.9.
compensation recipient
means the person to whom the FSCS is required to pay compensation, as set out in Chapter 6.
compensation sticker and poster rules
means 23.4, 23.5, 23.6, 23.7(1) and 23.8(1).
continuity of access systems
means a firm’s systems for satisfying 13.4 to 13.9.
covered deposit
means the part of an eligible deposit that does not exceed the coverage levels set out in Chapter 4.
[Note: Art. 2(1)(5) of the DGSD]
has the meaning given in section 31 of the Credit Unions Act 1979.
(1) in relation to a credit union, any share of a class defined as a deferred share by section 31A of the Credit Unions Act 1979;
(2) in relation to a building society, any share of a class defined as deferred shares for the purposes of section 119 of the Building Societies Act 1986.
(1) a credit balance which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution is required to repay under the legal and contractual conditions applicable, including a fixed-term deposit and a savings deposit, but excluding a credit balance where:
(a) its existence can only be proven by a financial instrument as defined in MiFID II, unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which exists in a Member State 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;
(2) a share in a building society, excluding a deferred share;
(3) a share in a credit union, excluding a deferred share; or
(4) a share in a Northern Ireland credit union, excluding a deferred share.
[Note: Art. 2(1)(3) of the DGSD]
means the compensation scheme for compensating persons in respect of deposits.
means the Deposit Guarantee Scheme Regulations 2015 (SI 2015/486).
means the holder or, in the case of a joint account, each of the holders, of a deposit.
[Note: Art. 2(1)(6) of the DGSD]
DGS base costs levy
means a base costs levy imposed by the FSCS on DGS members.
means the costs incurred:
(1) in paying compensation under the deposit guarantee scheme;
(2) under section 214B or section 214D of FSMA; or
(3) by virtue of section 61 of the Banking Act 2009;
(including the costs of paying interest, principal and other costs of borrowing to pay such costs).
DGS compensation costs levy
means a levy imposed by the FSCS on DGS members to meet DGS compensation costs.
DGS levy
means a DGS compensation costs levy, a DGS management expenses levy or a legacy costs levy.
DGS management expenses levy
means a levy imposed by the FSCS on DGS members to meet management expenses and which is made up of one or more of a DGS base costs levy and a DGS specific costs levy.
(1) a UK bank;
(2) a building society;
(3) a credit union;
(4) a Northern Ireland credit union; or
(5) an overseas firm that is not an incoming firm and has a Part 4A permission that includes accepting deposits.
means management expenses attributable to the deposit guarantee scheme other than base costs, which the FSCS has incurred or expects to incur.
DGS specific costs levy
means a levy, forming part of the DGS management expenses levy, to meet the DGS specific costs in the financial year of the deposit guarantee scheme to which the levy relates.
means Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (recast).
means the entitlement of a person to establish a branch or provide services in an EEA State other than that in which they have their relevant office in accordance with the Treaty as applied in the European Economic Area; and subject to the conditions of the CRR and CRD.
means an incoming firm that is a credit institution of an EEA State that has adopted the euro or that does not convert into their national currency the amount referred to in Article 6(1) of the DGSD, pursuant to Article 6(5) DGSD.
exclusions view
means a single, consistent view of:
(1) an account holder’s aggregate deposits with a firm limited to accounts that contain or may contain eligible deposits to which the account holder is not absolutely entitled; or
(2) a depositor’s aggregate eligible deposits with a firm limited to accounts that are not active
and which contains the information required by 12.9.
(1) up to and including 31 December 2016, a list in the form set out in Section A of Annex 3 to this Part; and
(2) from 1 January 2017, a list in the form set out in Section B of Annex 3 to this Part.
means the area established by the EEA agreement.
home state scheme
means a scheme or arrangement (including the deposit guarantee scheme) for the payment of compensation in respect of eligible deposits, which was established in the EEA State which is, with regard to a particular institution, the home Member State.
host state scheme
means a scheme or arrangement (including the deposit guarantee scheme) for the payment of compensation in respect of eligible deposits, which was established in the EEA State which is, with regard to a particular institution, the host Member State.
describes the status of a firm following a determination that its deposits are unavailable deposits.
means an information sheet containing the categories of information set out in the template in Annex 1 to this Part.
has the meaning given in section 22(4) of FSMA.
means the costs incurred prior to 3 July 2015 by the FSCS:
(1) in paying compensation; or
legacy costs levy
means a levy imposed by the FSCS to meet legacy costs.
(1) in England and Wales, a local authority within the meaning of the Local Government Act 1972, the Greater London Authority, the Common Council of the City of London or the Council of the Isles of Scilly;
(2) in Scotland, a council within the meaning of the Local Government etc. (Scotland) Act 1994;
(3) in Northern Ireland, a district council within the meaning of The Local Government Act (Northern Ireland) 1972;
(4) an authority equivalent to (1), (2) or (3) located in a country outside the UK.
low-risk assets
means items falling into the first or second category of Table 1 of Article 336 of the CRR.
[Note: Art. 2(1)(14) of the DGSD]
has the meaning given in section 223(3) of FSMA.
means the mandatory contributions described in Article 10(4) of the DGSD.
means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC .
has the meaning given in Article 1(2) of the money laundering directive.
money laundering directive
means Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
money-purchase benefits
means in relation to a member of a personal pension scheme or an occupational pension scheme or the widow or widower or surviving civil partner of a member of such a scheme, benefits the rate or amount of which is calculated solely by reference to the schemes assets which (because of the nature of the calculation) must necessarily suffice to provide the benefits which fall within section 181 of the Pensions Scheme Act 1993 and section 99 of the Pensions Act 2008, each as amended by section 29 of the Pensions Act 2011.
means a body corporate whose business consists solely of acting as a nominee holder of investments or other property.
non-UK scheme
means a scheme established pursuant to the DGSD in an EEA State other than the UK.
Northern Ireland credit union
means a firm which is either a society registered under the Credit Unions (Northern Ireland) Order 1985 or a society registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 as a credit union.
an account is not active if it:
(1) is a dormant account; or
(2) is an account for which the firm has received formal notice of a legal dispute or competing claims to the proceeds of the account; or
(3) is an account owned or controlled by a person whose name appears on the “Consolidated list of financial sanctions targets in the United Kingdom” that is maintained by HM Treasury or which is otherwise subject to restrictive measures imposed by national governments or international bodies.
means freehold, heritable or leasehold property (or the equivalent in another country), including land, which was, is, or is intended to become the depositor’s only or main residence.
includes a government, central administrative authority, provincial authority, regional authority, municipal authority or local authority.
means a single, consistent view of a depositor’s aggregate eligible deposits with a firm which contains the information required by 12.9, but excludes from view those accounts included in the exclusions view.
SCV effectiveness report
means a report from a firm’s board of directors confirming that the firm’s SCV system satisfies the SCV requirements.
SCV requirements
means the requirements on firms set out in Chapter 12.
means a firm’s system for satisfying the SCV requirements.
small local authority
means a local authority with an annual budget of up to EUR 500,000.
means an occupational pension scheme of a kind described in article 4(4) and 4(5) of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (SI 2001/1177).
statement of business
means the information required under 44.2.
means the amount of available financial means which the deposit guarantee scheme is required to reach, which is 0.8% of the amount of covered deposits (excluding temporary high balances) of DGS members.
transferable eligible deposit
means the portion of an eligible deposit up to and including the coverage level provided for in 4.2, identified in accordance with Chapter 13 and 12.9.
unavailable deposit
means a deposit that is due and payable but has not been paid by a DGS member under the applicable legal or contractual conditions where either:
(1) (in accordance with the deposit guarantee scheme regulations) the PRA, or the FSCS in the case of a credit union or a Northern Ireland credit union, has determined that in its view the DGS member appears to be unable for the time being, 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; or
(2) a judicial authority has made a ruling for reasons which are directly related to the DGS member’s financial circumstances and the ruling has had the effect of suspending the rights of depositors to make claims against it.
[Note: Art. 2(1)(8) of the DGSD]
2.1 This Chapter applies to the FSCS and firms.
This Chapter applies to the FSCS and firms.
The provisions in this rule determine whether a deposit is an eligible deposit:
(1) A deposit is an eligible deposit only if it is held by:
(a) a UK establishment of a DGS member; or
(b) a branch of a DGS member established in another EEA State under an EEA Right.
(2) A deposit is held by a UK establishment or a branch if it is assigned by the firm to an account of that UK establishment or that branch.
(3) A deposit is, subject to the other rules in this Chapter, an eligible deposit if it is held by a firm which:
(a) had a Part 4A permission to accept such deposits at the time the deposit was accepted but no longer has permission to accept eligible deposits, or is subject to a requirement preventing it from doing so; and
(b) is not now a member of a non-UK scheme which protects such deposits.
(4) The following are not eligible deposits:
(a) a deposit made by another credit institution;
(b) own funds;
(c) a deposit arising out of a transaction in connection with which there has been a criminal conviction for money laundering;
(d) a deposit by a financial institution;
(e) a deposit by an investment firm;
(f) a deposit the holder and any beneficial owner (as defined in regulation 3 of the Money Laundering Regulations, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017) of which have not, at the compensation date had their identity verified in accordance with:
(i) regulation 30 of the Money Laundering Regulations, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;
(ii) if their identity was verified prior to 26 June 2017, regulation 9 of the Money Laundering Regulations 2007 (in which case, the term beneficial owner in (f) above shall have the meaning given in regulation 6 of the Money Laundering Regulations 2007); or
(iii) in each case, equivalent European Economic Area requirements);
(g) a deposit by an insurance undertaking or a reinsurance undertaking;
(h) a deposit by a collective investment undertaking;
(i) a deposit by a pension or retirement fund (but excluding deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium-sized enterprises);
(j) a deposit by a public authority, unless it is a small local authority;
(k) a debt security issued by the DGS member and any liabilities arising out of own acceptances and promissory notes.
[Note: Art. 4(3), 4(6), 5(1), 5(2)(a) and 14(1) of the DGSD]
A firm, must at least annually, take reasonable steps to confirm that a depositor that it has classified as a small local authority continues to be a small local authority, using the exchange rate prevailing on the 3 July immediately preceding the date on which any confirmation is undertaken.
Circumstances in Which the FSCS Pays Compensation in Respect of Eligible Deposits
The FSCS must pay compensation in accordance with this Part in respect of an eligible deposit if it is satisfied that the eligible deposit is a deposit with either:
(1) a DGS member which is in default; or
(2) a firm which is in default and which:
(b) is not a member of a non-UK scheme which covers such deposits.
The maximum compensation sum payable for the aggregate eligible deposits of each depositor is £85,000, save that additional compensation may be payable in cases to which 4.3 applies.
[Note: Art. 6(1) of the DGSD]
[Note: Regulation 7A of the deposit guarantee scheme regulations provides for a transitional maximum compensation level of £85,000 until 31 December 2015 for depositors who were, or would have been, eligible for compensation before 3 July 2015 and are eligible for compensation on and after 3 July 2015.]
The maximum compensation sum payable for a temporary high balance is £1,000,000, save that no limit shall apply to the compensation payable for a temporary high balance arising from a payment in connection with personal injury or incapacity.
[Note: Art. 6(2) of the DGSD]
Compensation shall be calculated by reference to eligible deposits held on the compensation date.
[Note: Art. 7(4) of the DGSD]
The limit provided for in 4.2 applies to the aggregate eligible deposits placed by a depositor with the same credit institution, irrespective of the number of accounts, the currency, or the location within the EEA.
[Note: Art. 7(1) of the DGSD]
The share of each depositor of a joint account shall be considered separately in calculating the limits provided for in 4.2 and 4.3, except where 5.5 applies. In the absence of contrary provision, the joint account shall be divided equally among the depositors to the nearest penny.
[Note: Art. 7(2) of the DGSD]
Deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, without legal personality, must be aggregated and treated as if made by a single depositor for the purpose of calculating the limits provided for in 4.2 and 4.3.
Where several persons are absolutely entitled to a beneficial interest in a deposit, the share of each, under the arrangements subject to which the deposit is managed, shall be considered separately in calculating the amount payable to each of them.
[Note: Art. 7(3) of the DGSD]
Where several persons are absolutely entitled to a beneficial interest in a deposit, and some of them are persons whose own deposits would not be eligible deposits, the FSCS must adjust the amount of the overall deposit to eliminate the part of it which, in the FSCS’s view, relates to those beneficiaries’ interest in the overall deposit.
Liabilities of the depositor against the DGS member shall not be taken into account when calculating the compensation sum.
Except where the compensation sum arises from a temporary high balance, the FSCS shall reimburse interest owed on eligible deposits which had accrued, but has not been credited, at the compensation date. The limit provided for in 4.2 shall not be exceeded by the payment of any such interest.
[Note: Art. 7(7) of the DGSD]
6.1 This Chapter applies to the FSCS.
This Chapter applies to the FSCS.
The FSCS must pay any compensation to the depositor, with the following exceptions:
(1) where the FSCS is required to make payments on behalf of a non-UK scheme in accordance with the deposit guarantee scheme regulations;
(2) where the FSCS must instruct a non-UK scheme to make payments on its behalf in accordance with 27.3;
(3) where the FSCS is required to make payments to a person other than the depositor in accordance with section 214B or section 214D of FSMA or section 61 of the Banking Act 2009;
(4) where the depositor directs that any compensation be paid to another person, the FSCS may pay the compensation as directed by the depositor;
(5) where the account holder is not absolutely entitled to the eligible deposit:
(a) if another person (A) is absolutely entitled to the eligible deposit, A is the person entitled to compensation in respect of the deposit, and accordingly the FSCS must pay any compensation to A (or, where A (or a person who has authority to act on behalf of A) directs that any compensation be paid to another person, the FSCS may pay the compensation as directed by A (or a person who has authority to act on behalf of A), provided that A has been identified or is identifiable before the compensation date; and
(b) if no person is absolutely entitled to the eligible deposit, the FSCS must pay any compensation in accordance with such of 6.3, 6.4, 6.5 and 6.6 as applies.
the FSCS must treat that person’s entitlement to compensation in this capacity as separate from the entitlement to compensation in any other capacity, as if the two entitlements were held by different persons.
If a deposit is held:
(1) for the trustees of a small self-administered scheme, an occupational pension scheme of micro, small and medium sized enterprise, or the trustee or operator of, or the person carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme;
(2) for one or more members of a pension scheme (or, where relevant, the beneficiary of any member) whose benefits are money-purchase benefits,
(2) operators of, or persons carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or a personal pension scheme
(or any combination thereof), the FSCS must treat them as a single and continuing person distinct from the person who may from time to time be the trustees, or the operators or persons winding up the relevant pension scheme.
Where any of the provisions of 6.3, 6.5 or 6.6 apply, the FSCS must try to ensure that any amount paid to:
(3) for the benefit of members or beneficiaries whose own deposits would be eligible deposits; and
Where a person holds a deposit as the personal representative of another or on behalf of another, the FSCS must treat the personal representative or the person acting on behalf of another in respect of that deposit as if they were standing in the shoes of that other person.
In applying this Chapter to deposits held with a branch outside the UK of a DGS member, the FSCS must interpret references to:
For the purposes of this Part, the cases in which A is absolutely entitled to the eligible deposit include where:
(a) A is a beneficiary under a bare trust;
(b) the account holder is a nominee company which is holding money in the account for A;
(c) A is a client in respect of money which the account holder is treating as client money of A in accordance with FCA rules, the SRA Accounts Rules 2011 or an equivalent regime; or
(d) the FSCS is otherwise satisfied that A is absolutely entitled to the eligible deposit taking into account any information that the FSCS considers relevant.
The FSCS may pay compensation in any form and by any method (or any combination of them) that it determines is appropriate including, without limitation:
(1) by paying the compensation (on such terms as the FSCS considers appropriate) to a DGS member or an incoming firm which agrees to become liable to the compensation recipient in a like sum;
(2) by paying compensation directly into an existing deposit account of (or for the benefit of) the compensation recipient, with a DGS member or an incoming firm (but before doing so the FSCS must take such steps as it considers appropriate to verify the existence of such an account and to give notice to the depositor of its intention to exercise this power);
(3) where two or more persons are absolutely entitled to a deposit, by accepting communications from and/or paying compensation to any one of those persons where this is in accordance with the terms and conditions for communications and withdrawals of the eligible deposit.
This Chapter is subject to:
(1) Chapter 6;
(2) section 214B and section 214D of FSMA; and
(3) section 61 of the Banking Act 2009.
Currency of Compensation
Subject to 8.3, the FSCS must make compensation payments in respect of eligible deposits in pounds sterling. Where the account in which the eligible deposit was held was maintained in a different currency, the FSCS must use the exchange rate applying on the compensation date.
Where the FSCS is instructing a non-UK scheme to make a payment under 27.3, the FSCS must instruct the relevant non-UK scheme to make such payments in the currency of that host Member State.
[Note: Art. 6(4) of the DGSD]
The FSCS must pay compensation in respect of eligible deposits within the applicable time period and as soon as reasonably practicable after:
(1) it is satisfied that the conditions in 3.2 have been met; and
(2) it has calculated the amount of compensation due to the compensation recipient.
The applicable time period referred to in 9.2 is the period starting on the day following the compensation date and ending:
(1) until 31 December 2018: twenty business days later;
(2) from 1 January 2019 until 31 December 2020: fifteen business days later;
(3) from 1 January 2021 until 31 December 2023: ten business days later;
(4) from 1 January 2024: seven business days later;
unless 6.2(5) applies, or the FSCS reasonably believes that it may, in which case it ends three months later.
[Note: Art. 8(1), (2) and (3) of the DGSD]
The FSCS may decide to defer the payment of compensation beyond the time period set out in 9.3 where:
(1) it is uncertain whether a person is entitled to receive compensation;
(2) the deposit is subject to a legal dispute;
(3) the deposit is subject to restrictive measures imposed by national governments or international bodies;
(4) there has been no transaction on the account within the last 24 months;
(5) the amount to be repaid is deemed to be part of a temporary high balance, in which case 10.8 applies;
(6) the amount to be repaid is to be paid out by the host state scheme; or
(7) the depositor or the compensation recipient has been charged with an offence arising out of or in relation to money laundering.
[Note: Art. 8(5) and (8) of the DGSD]
The FSCS may decide not to pay compensation where there has been no transaction on the account in which the deposit is held within the 24 months prior to the compensation date and the amount of the deposit is lower than the administrative costs that would be incurred by the FSCS in paying compensation.
[Note: Art. 8(9) of the DGSD]
(1) From 1 June 2016 until 31 December 2023, in cases to which 9.2 applies, where the FSCS cannot pay compensation within seven business days starting on the day following the compensation date, the FSCS shall, provided it receives sufficient information to enable it to make a payment, ensure that within five business days of receipt of a request from a depositor:
(a) the depositor who is an individual, has access to an appropriate amount of their covered deposits to cover the cost of living; and
(b) the depositor which is not a large company, or is a small local authority, has access to an appropriate amount of their covered deposits to cover necessary business expenses.
[Note: Art 8(4) of the DGSD]
(3) In 9.6 the following definition shall apply:
means a body corporate which does not qualify as a small company under section 382 of the Companies Act 2006.
In order to qualify as a temporary high balance, a part of an eligible deposit in excess of the coverage limit provided for in 4.2 must meet at least one of the following additional criteria:
(1) it comprises:
(a) monies deposited in preparation for the purchase of a private residential property (or an interest in a private residential property) by the depositor;
(b) monies which represent the proceeds of sale of a private residential property (or an interest in a private residential property) of the depositor; or
(c) monies which represent the proceeds of an equity release by the depositor in a private residential property;
(2) it comprises sums paid to the depositor in respect of:
(a) benefits payable under an insurance policy;
(b) a claim for compensation for personal (including criminal) injury;
(c) State benefits paid in respect of a disability or incapacity;
(d) a claim for compensation for wrongful conviction;
(e) a claim for compensation for unfair dismissal;
(f) their redundancy (whether voluntary or compulsory);
(g) their marriage or civil partnership;
(h) their divorce or dissolution of their civil partnership; or
(i) benefits payable on retirement;
(3) it comprises sums paid to the depositor in respect of:
(a) benefits payable on death;
(b) a claim for compensation in respect of a person’s death; or
(c) a legacy or other distribution from the estate of a deceased person;
(4) it is held in an account on behalf of the personal representatives of a deceased person for the purpose of realising and administering the deceased’s estate; or
(5) it otherwise serves a social purpose provided for, or of the type provided for, in the law of a part of the United Kingdom, which is linked to the marriage, civil partnership, divorce, dissolution of civil partnership, retirement, incapacity, death of an individual, or to the buying or selling of a depositor’s only or main residence that is not freehold, heritable or leasehold property.
Following the compensation date, the FSCS must review the single customer view of each depositor with the DGS member and provide written notice to an individual with aggregate eligible deposits in excess of the coverage levels set out in 4.2 of the following:
(1) that the depositor may be entitled to additional compensation if all or part of the eligible deposit in excess of the coverage levels provided for in 4.2 qualifies as a temporary high balance;
(2) that in order to claim such additional compensation, the depositor must provide the FSCS with a written application and evidence supporting the depositor’s claim that all or part of the eligible deposit in excess of the coverage levels provided for in 4.2 qualifies as a temporary high balance;
(3) that the depositor may make more than one claim for a temporary high balance if there are multiple events giving rise to a temporary high balance; and
(4) the date by which such written application and supporting evidence should be submitted to the FSCS.
The FSCS must pay compensation to a depositor in respect of a temporary high balance in accordance with 4.3 if it is satisfied that there is a sufficient link between an event giving rise to a temporary high balance and the part of the eligible deposit in excess of the coverage levels provided for in 4.2, taking into account the following considerations:
(1) the written application and evidence provided by the depositor under 10.3; and
(2) any other information that the FSCS considers relevant.
The FSCS must pay compensation to a depositor in accordance with 4.3 in respect of each temporary high balance that the depositor has with any one DGS member.
The FSCS may pay compensation in respect of a temporary high balance to a person who makes a claim on behalf of another person if the FSCS is satisfied that the person on whose behalf the claim is made would have been paid compensation by the FSCS in respect of that temporary high balance had the person been able to make the claim themselves, or to pursue their application for compensation further.
The protection for temporary high balances under 4.3 shall run for a period of six months from the later of:
(1) the first date on which a temporary high balance is credited to a depositor’s account, or to a client account on a person’s behalf; and
(2) the first date on which the temporary high balance becomes legally transferable to the depositor.
The FSCS must, within three months of the compensation date, pay to the depositor a sum representing the amount due to the depositor in respect of the temporary high balance unless one or more of 10.9 to 10.11 applies.
[Note: Art. 8(5)(d) of the DGSD]
The FSCS may defer payment in respect of a temporary high balance for a period in excess of the period specified in 10.8 where:
(1) the depositor provides the written application and evidence referred to in 10.3 to the FSCS more than two months following the date of the written notice from the FSCS under 10.3;
(2) the FSCS has informed the depositor that the FSCS is contacting a third party to ask for additional information necessary to determine the claim; or
(3) one or more of the circumstances set out in 9.4 (1)-(7) arise.
If the FSCS considers that the written application and evidence provided by a depositor under 10.3 does not demonstrate a sufficient link between an event giving rise to a temporary high balance and the eligible deposit being in excess of the coverage levels provided for in 4.2, the FSCS must write promptly to that depositor to:
(1) request any additional information that the FSCS considers necessary to determine the claim (within such time as the FSCS may specify); or
(2) confirm that the FSCS has determined that the deposit is not a temporary high balance and that it rejects the claim.
If the written application or evidence provided by the depositor under 10.3 contains any material inaccuracy or omission, the FSCS may reject the claim for compensation unless this is considered by the FSCS to be wholly unintentional.
Where all or part of a temporary high balance is transferred to another DGS member after the start of the coverage period referred to in 10.7, the FSCS must pay compensation if it considers that the transferred deposit is sufficiently linked to the temporary high balance. The coverage period in 10.7 shall be calculated by reference to the point at which the temporary high balance was credited to the first account.
Where the FSCS rejects a claim made under this Chapter, it must give:
(1) written reasons for its decision;
(2) a summary of any right to request an internal FSCS review of the decision; and
(3) a summary of any right to appeal the decision.
Marking and Information Requirements
A firm must mark eligible deposits in a way that allows for the immediate identification of such deposits.
[Note: Art. 5(4) of the DGSD]
A firm must mark accounts (including client accounts and trust accounts) which are held on behalf of beneficiaries and which contain or may contain eligible deposits in a way that allows immediate identification of such accounts.
[Note: Art 5(4) and 7(3) of the DGSD]
A firm must be able to provide the FSCS with the aggregated amount of eligible deposits of every depositor.
Upon receipt of a request by the FSCS, a firm must provide the information in 11.3 to the FSCS.
[Note: Art 7(6) of the DGSD]
A firm must be able to provide the FSCS with all information necessary to enable the FSCS to prepare for the payment of compensation in accordance with this Part.
[Note: Art 4(8) and 8(6) of the DGSD]
Upon receipt of a request by the FSCS, a firm must provide the information in 11.5 so as to enable the FSCS to prepare for and pay compensation in accordance with this Part.
A firm must take reasonable steps to ensure the accuracy of the data it holds to satisfy the requirements of this Chapter.
The information required by 11.1 and 11.2 must be electronically stored.
Single Customer View Requirements
12.A1
Inactive date 01/07/2017
This Chapter applies subject to Chapter 58.
12.A2
means the part of an eligible deposit that does not exceed £75,000.
means the portion of an eligible deposit up to and including £75,000, identified in accordance with Chapter 13 and 12.9.
A firm must provide to the FSCS all single customer views and exclusions views within 24 hours of the relevant deposits becoming unavailable deposits.
A firm must provide all single customer views and exclusions views to the PRA or FSCS within 24 hours of a request by the PRA or FSCS.
If a firm does not have any accounts or balances which are required to be included within an exclusions view, the firm must provide confirmation of this to the FSCS.
[Note: Art. 4(8), 7(6) and 8(6) of the DGSD]
A firm must provide the information required by 12.1 and 12.2 by secure electronic transmission and in a format which is readily transferable to and compatible with the FSCS’s systems.
A firm must provide the FSCS with single customer views and exclusions views within three months of receiving a Part 4A permission to accept deposits.
The FSCS must, within six months of receiving the information required by 12.2 or 12.5, advise the PRA whether the information provided by a firm’s SCV system is capable of being submitted to the FSCS and whether it is compatible with the FSCS’s systems to enable it to pay compensation within the time limits contained in 9.2.
A firm must ensure that its SCV system:
(1) automatically identifies the amount of covered deposits payable to each depositor; and
(2) includes a facility which identifies any portion of an eligible deposit that is over the coverage level provided for in 4.2.
A firm must take reasonable steps to ensure the accuracy of the data it holds in order to satisfy the requirements of this Chapter.
A firm must ensure that each single customer view and exclusions view contains all the information set out in the table below.
1 Single customer view record number Unique customer identifier. Maximum number of characters in field: 200
2 Title Title [if applicable and where held by the firm]. Maximum number of characters in field: 20
3 Customer first forename First forename [if applicable]. Maximum number of characters in field: 50
4 Customer second forename Second forename [if applicable and where held by the firm]. Maximum number of characters in field: 50
5 Customer third forename Third forename [if applicable and where held by the firm]. Maximum number of characters in field: 50
6 Customer Surname [or company name or name of account holder] Surname [or company name or name of account holder]. Maximum number of characters in field: 100
7 Previous Name Any former name of the account holder [where held by the firm]. Maximum number of characters in field: 200
8 National Insurance number National Insurance number [if applicable and where held by the firm]. Maximum number of characters in field: 9
9 Passport number Passport number [if applicable and where held by the firm]. Maximum number of characters in field: 200
10 Other national identifier The type of national identifier being provided [if applicable and where held by the firm]. Maximum number of characters in field: 50
11 Other national identity number The national identity number [if applicable and where held by the firm]. Maximum number of characters in field: 50
12 Company number Company registration number or other business registration number [if applicable]. Maximum number of characters in field: 50
13 Customer date of birth Date of birth [if applicable and where held by the firm]. DDMMYYYY
Maximum number of characters in field: 8
14 Single customer view record number Unique customer identifier. Maximum number of characters in field: 200
15 Address line 1 First line of address. Maximum number of characters in field: 100
16 Address line 2 Second line of address. Maximum number of characters in field: 100
17 Address line 3 Third line of address [if applicable]. Maximum number of characters in field: 100
18 Address line 4 Fourth line of address [if applicable]. Maximum number of characters in field: 100
19 Address line 5 Fifth line of address [if applicable]. Maximum number of characters in field: 100
20 Address line 6 Sixth line of address [if applicable]. Maximum number of characters in field: 100
21 Postcode Postcode [except where not used by a country]. Maximum number of characters in field: 30
22 Country Country [for countries outside the UK]. Maximum number of characters in field: 30
23 Email address Email address [where held by the firm]. Maximum number of characters in field: 50
24 Main phone number Daytime phone or main phone number [where held by the firm]. Numeric
Maximum number of characters in field: 40
25 Evening phone number Phone number 2 [where held by the firm]. Numeric
26 Mobile phone number Phone number 3 [where held by the firm]. Numeric
Maximum number of characters in field: 30
Details of accounts(s)
27 Single customer view record number Unique customer identifier. Maximum number of characters in field: 200
28 Account title Surname, first name, any other initials or middle name identifier or company name or name of account holder. Maximum number of characters in field: 50
29 Account number Unique number for this account. Maximum number of characters in field: 35
30 BIC Business Identifier Code for the customer [if applicable and where held by the firm]. ISO 9362 or alternative code if ISO 9362 is unavailable
Maximum number of characters in field: 11
31 IBAN International Bank Account Number [if applicable]. ISO 13616 or alternative code if ISO 13616 is unavailable
Maximum number of characters in field: 34
32 Sort code If applicable. Numeric
Maximum number of characters in field: 6
33 Product type Firms must allocate products to one of the following categories:
Instant Access Accounts (including current accounts);
Individual Savings Accounts (ISAs);
notice accounts;
fixed term deposits with a term of less than one year;
fixed term deposits with a term of one year or more but less than two years;
fixed term deposits with a term of two years or more but less than four years;
fixed term deposits with a term of four years or more;
FP4P
Maximum number of characters in field: 5
34 Product name The name of the product held. Maximum number of characters in field: 50
35 Account holder indicator This field applies to joint or multiple accounts. It must identify how many account holders there are in relation to the account. If the account has one account holder, the “Account Holder Indicator = 001”. If the account has two owners, the “Account Holder Indicator = 002” for both account holders.
Maximum number of characters in field: 3
36 Account status code If applicable, this field should set out any flags that the firm has against an account, including (but not limited to):
whether the depositor has any special communication requirements (e.g., Braille)
Maximum number of characters in field: 50
37 Exclusion type
If applicable, where the file is an exclusions view, an indication of why the account falls within an exclusions view.
Identify all of the following which apply:
a) The depositor is not absolutely entitled to the sums held in the account;
b) The account is a dormant account;
c) The account is an account for which the firm has received formal notice of a legal dispute or competing claims to the proceeds of the account;
d) The account appears on the “Consolidated list of financial sanctions targets in the United Kingdom” that is maintained by HM Treasury or is otherwise subject to restrictive measures imposed by national governments or international bodies.
b) LEGDOR
c) LEGDIS
d) HMTS
38 Recent transactions. Has there been any transaction relating to the deposit within the 24 months prior to production of the single customer view or exclusions view, as applicable? Values: Yes / No
39 Account branch jurisdiction. If the account is held in a branch outside the United Kingdom, please state in which jurisdiction the account is held [if applicable]. ISO 3166-1 Alpha-3 or alternative code if ISO 3166-1 is unavailable
40 BRRD marking Is the account marked under 13.2? [if applicable]. Value: Yes / No
41 Structured deposit accounts State whether or not the account is a structured deposit account where the account balance is calculated in accordance with 12.11. Value: Yes / No
42 Account balance in sterling Account balance including any interest, at end of business on:
the date on which the deposit becomes an unavailable deposit;
the date of request from FSCS or PRA as applicable.
Where there is a negative balance, the amount should be preceded by a minus symbol (‘-‘). Do not include any non-numeric symbols such as commas, currency symbols (e.g., £).
All balances must be rounded up to two decimal places.
Maximum number of characters in field: 15
43 Authorised negative balances The maximum negative balance on the account authorised by the firm, in sterling. Do not include any non-numeric symbols such as commas, currency symbols (e.g. £).
All figures must be rounded up to two decimal places.
If the account does not accept negative balances please insert 0.00.
If the maximum negative balance authorised is e.g. £50, please insert 50.00, not -50.00.
44 Currency of account Currency in which the account is held. ISO 4217 or alternative code if ISO 4217 is unavailable
45 Account balance in original currency The original balance in the original currency, including any interest at the end of business before conversion to sterling [if applicable].
Where there is a negative balance, the amount should be preceded by a minus symbol (‘-‘). Do not include any non-numeric symbols such as commas, currency symbols (e.g., £). All balances must be rounded up to two decimal places.
46 Exchange rate The exchange rate used to calculate the sterling balance, and the date on which the calculation was undertaken [if applicable]. Do not include any non-numeric symbols such as commas, currency symbols (e.g., £). All balances must be rounded up to nine decimal places.
Maximum number of characters in field: 29
47 Original account balance before interest Account balance in original currency before interest accrued applied.
48 Transferable eligible deposit If the file is a single customer view, the amount of the transferable eligible deposit [if applicable].
Do not include any non-numeric symbols such as commas, currency symbols (e.g., £). All balances must be rounded up to two decimal places.
49 Single customer view record number Unique customer identifier. Maximum number of characters in field: 200
50 Aggregate balance in sterling Aggregate balance across all accounts which contain a positive balance at end of business on:
the date the deposit becomes an unavailable deposit;
Where an account contains a negative balance, that balance should be excluded from the calculation of the aggregate balance. Do not include any non-numeric symbols such as commas, currency symbols (e.g., £). All balances must be rounded up to two decimal places.
51 Compensatable amount in sterling The amount to be compensated subject to the limit check that must be performed by the firm pursuant to 12.7(2) (this could be lower than the aggregate balance across all accounts if this exceeds the coverage level provided for in 4.2).
For beneficiary accounts, it may not be possible to calculate this amount and this field may be left blank. Do not include any non-numeric symbols such as commas, currency symbols (e.g., £). All balances must be rounded up to two decimal places.
Where a firm prepares both a single customer view and an exclusions view for a depositor, the “unique customer identifier” on both the single customer view and the exclusions view must be identical.
Where the account is a structured deposit account where the return cannot be calculated until the maturity date because the return is based on growth of an index as determined at a future date, the figure in the account balance (Field 42) must be the total of the principal, any attributable contractual minimum return and any interest accrued prior to the product start date.
Where a depositor holds more than one account, the section of the single customer view and exclusions view which sets out “Details of account(s)” must be completed for each account held.
The amount inserted into each single customer view and exclusions view as the account balance (Field 42) and aggregate balance across all accounts (Field 50) must be the total of principal plus any interest or premium attributable up to the compensation date (or the date on which the PRA or FSCS requests the firm to provide the single customer view and exclusions view in accordance with 12.2).
A firm must ensure that the amount inserted into each single customer view and exclusions view as the account balance (Field 42), original account balance before interest (Field 47) and aggregate balance across all accounts (Field 50) includes any payment made to the depositor for which value has been credited to the depositor’s account regardless of whether the firm has received the value itself. A firm must ensure that the amount inserted into each single customer view and exclusions view as the account balance (Field 42), original account balance before interest (Field 47) and aggregate balance across all accounts (Field 50) excludes any payment sent by the depositor which has been debited from the depositor’s account regardless of whether the firm has sent value itself.
At the end of the file containing the single customer view and exclusions view for all depositors, the firm must include a file footer indicating that the file is complete. The file footer must contain the figure “9" repeated 20 times. The file footer must appear at the end of the complete file containing the single customer view or exclusions view for all depositors after the last record.
BRRD Marking and Continuity of Access
13.A1
13.A2
This Chapter does not apply to the FSCS, credit unions or Northern Ireland credit unions.
A firm must mark accounts which hold:
(1) eligible deposits from natural persons and micro, small and medium-sized enterprises; and
(2) deposits that would be eligible deposits from natural persons or micro, small and medium-sized enterprises if the deposit had not been made through a branch of the firm located outside the EEA
in a way that allows for the immediate identification of such accounts.
A firm must, at least annually, take reasonable steps to confirm that a depositor that it has classified as a micro, small and medium-sized enterprise continues to be a micro, small and medium-sized enterprise using the exchange rate prevailing on the 3 July immediately preceding the date on which any confirmation is undertaken.
(3) automatically identifies the transferable eligible deposit for each depositor, including the account or accounts in which the transferable eligible deposit is held; and
(4) automatically identifies any account held by a depositor which contains both the transferable eligible deposit (or a portion of the transferable eligible deposit) and also other deposits of the depositor which do not form part of the transferable eligible deposit.
A firm must identify the transferable eligible deposit for each depositor by applying the amount of the maximum payment for an eligible deposit to the accounts included in the single customer view in accordance with the hierarchy set out in the table below:
1 Instant Access Accounts (including current accounts)
3 Notice accounts
4 Fixed term deposits with a term of less than one year
5 Fixed term deposits with a term of one year or more but less than two years
6 Fixed term deposits with a term of two years or more but less than four years
7 Fixed term deposits with a term of four years or more
A firm must have systems in place that enable it to transfer any:
(1) eligible deposits which do not form part of the transferable eligible deposit; and
(2) negative balances in accounts that may also hold eligible deposits,
into a separate account.
A firm must transfer any:
(1) eligible deposits which do not form part of the transferable eligible deposits; and
into a separate account within 48 hours of the transferable eligible deposits becoming unavailable deposits, or upon receipt of a request of the PRA.
A firm must have systems in place which enables it to freeze any account which is not marked in accordance with 11.1 and any account included in an exclusions view within 5 hours of the transferable eligible deposits becoming unavailable deposits, or on a request of the PRA.
The information required by 13.2 must be electronically stored.
14.1 This Chapter does not apply to the FSCS.
Single Customer View and Exclusions View Reporting
A firm must provide the PRA and FSCS with an SCV effectiveness report within three months of receiving a Part 4A permission to accept deposits.
A firm must notify the PRA and FSCS of a material change in the firm’s SCV system within 3 months of the change.
The notification in 14.3 must be accompanied by a statement signed on behalf of the firm’s governing body confirming that the firm’s SCV system satisfies the SCV requirements.
A firm must provide an SCV effectiveness report to the PRA or FSCS promptly upon request by the PRA or FSCS.
A firm must update its SCV effectiveness report annually.
A description of a firm’s SCV system and how it has been implemented must include an explanation of any code or keys used internally by the firm so that the FSCS can easily identify:
(1) eligible deposits and accounts which are held on behalf of beneficiaries and which contain or may contain eligible deposits; and
(2) the accounts referred to in 13.2.
A firm’s SCV effectiveness report must contain:
(1) a description of:
(a) the firm’s SCV system and how it has been implemented;
(b) how the firm proposes to transfer to the FSCS single customer views including specifying the transfer method and format;
(c) the testing undertaken with respect to the robustness of the firm’s SCV system (including information on preparation of the single customer view in stressed scenarios, frequency of testing and reconciliation with core systems);
(d) the number of single customer views and exclusions views in the firm’s SCV system;
(e) the firm’s plan for the ongoing maintenance of the firm’s SCV system;
(f) how the firm’s governing body will ensure that they remain satisfied that the firm’s SCV system continues to satisfy the SCV requirements;
(g) how the facility required by 12.7(2) is applied;
(h) any other factors relevant to the design of the firm’s SCV system or to an assessment of whether the firm’s SCV system satisfies the PRA’s SCV requirements;
(i) any dependencies in creating single customer views and exclusions views (such as reliance on group systems);
(j) treatment of accounts which are dormant accounts;
(k) how exclusions views are created; and
(l) a description of the procedures and controls that a firm has in place regarding the production of single customer views and exclusions views (such as secure storage and an indication of how key person dependencies are managed).
(2) a statement signed on behalf of the firm’s governing body confirming that the firm’s SCV system satisfies the SCV requirements;
(3) the date when the firm’s SCV system last produced a single customer view and exclusions view for each depositor;
(4) a statement of whether the firm’s SCV effectiveness report has been reviewed by external auditors, and if so a statement of the findings of that review; and
(5) a statement of whether there has been a material change to the firm’s SCV system since the date of the firm’s previous SCV effectiveness report.
15.1 This Chapter does not apply to the FSCS.
Marking and Continuity of Access Reporting
A firm must provide the PRA with a report on its systems to comply with 11.1 and 11.2 and its continuity of access systems within three months of receiving a Part 4A permission to accept deposits.
A firm must notify the PRA and FSCS of a material change in the firm’s systems to comply with 11.1 and 11.2 and its continuity of access systems within 3 months of the change.
The notification in 15.3 must be accompanied by a statement signed on behalf of the firm’s governing body confirming that the firm’s systems to comply with 11.1 and 11.2 and its continuity of access systems satisfy the requirements in 11.1, 11.2, 11.8 and 13.4 to 13.9.
A firm must provide the report to the PRA promptly upon request by the PRA.
A firm must update the report annually.
The report that a firm provides under 15.2 must contain:
(a) the firm’s systems to comply with 11.1 and 11.2 and continuity of access systems and how those systems have been implemented;
(b) the testing undertaken with respect to its systems to comply with 11.1 and 11.2 and continuity of access systems;
(c) the firm’s plan for the ongoing maintenance of its systems to comply with 11.1 and 11.2 and continuity of access systems;
(d) how the firm’s governing body will ensure that they remain satisfied that its systems to comply with 11.1 and 11.2 and continuity of access systems continue to satisfy the requirements of 13.4 to 13.9;
(e) any other factors relevant to the design of its systems to comply with 11.1 and 11.2 and continuity of access systems or to an assessment of whether those systems satisfy the requirements of 13.4 to 13.9;
(f) any dependencies in operating its systems to comply with 11.1 and 11.2 and continuity of access systems (such as reliance on group systems);
(2) a statement signed on behalf of the firm’s governing body confirming that the firm’s systems to comply with 11.1 and 11.2 and continuity of access systems satisfy the requirements of 13.4 to 13.9;
(3) a statement of whether the firm’s systems to comply with 11.1 and 11.2 and continuity of access systems have been reviewed by internal or external auditors, and, if so, a statement of the findings of that review; and
(4) a statement of whether there has been a material change to the firm’s systems to comply with 11.1 and 11.2 and continuity of access systems since the date of the firm’s previous report.
Firms’ Disclosure Obligations - Information and Exclusions
16.A1
(1) prepare an ‘information sheet’ and prepare an exclusions list;
(2) ensure that the information sheet is kept up-to-date;
(3) before entering into a contract on deposit-taking with the intending depositor:
(a) provide the exclusions list to;
(b) provide the information sheet to; and
(c) obtain an acknowledgement of receipt of the information sheet from,
each intending depositor.
(4) before entering into a contract on deposit-taking, inform each intending depositor of the exclusions from deposit guarantee scheme protection that fall within 2.2(4)(b) and 2.2(4)(k), if applicable.
[Note: Art. 16(1), (2), (3) and (4) and Art. 19(2) of the DGSD]
Where the depositor holds eligible deposits through a UK establishment, the information sheet must be in English, or, if different, in the language that was agreed between the depositor and the firm when the account was opened. A firm which accepts eligible deposits through a branch established in another EEA State may provide the information sheet in the official language of that EEA State.
[Note: Art. 16(4) of the DGSD]
Firms’ Disclosure Obligations - Statements of Account
17.A1
(1) confirm that deposits are eligible deposits (if that is the case) on a depositor’s statements of account;
(2) include a reference to the information sheet and a reference to the exclusions list on a depositor’s statement of account;
(3) at least annually:
(a) provide to the depositor:
(i) the information sheet; and
(ii) the exclusions list; and
(b) if applicable, inform the depositor of the exclusions from deposit guarantee scheme protection that fall within 2.2(4)(b) and 2.2(4)(k); and
(4) include the following information on a depositor’s statement of account:
For further information about the compensation provided by the FSCS, refer to the FSCS website at www.FSCS.org.uk.
[Note: Art. 16(1) and (3) of the DGSD]
If the depositor receives statements of account, the information set out in 17.1(3) must be provided in or with such a statement.
References to the Deposit Guarantee Scheme in Advertising
18.A1
A firm must not, in advertising materials, provide any further information about the deposit guarantee scheme beyond referring to the fact that the product advertised is or is not covered by the deposit guarantee scheme, and to any further factual information required by law including by this Part.
[Note: Art. 16(5) of the DGSD]
Disclosure of Transfer of Deposits
In the case of a merger, conversion of subsidiaries into branches, transfer or similar operations, a firm must:
(1) inform depositors at least one month before the operation takes legal effect, save where the PRA allows a shorter deadline on grounds of commercial secrecy or financial stability; and
(2) give depositors a three month period following notification in accordance with (1), to withdraw or transfer to another institution, without incurring any penalty, such part of their eligible deposits, together with any accrued interest and other benefits, as exceed the coverage level pursuant to 4.2 (or, if applicable in the case of a non-UK scheme, other transposition of Article 6(1) of the DGSD) at the time of the operation.
[Note: Art. 16(6) of the DGSD]
Disclosure of Withdrawal or Exclusion from the Deposit Guarantee Scheme
A firm must inform depositors within one month if it withdraws from or is excluded from the deposit guarantee scheme or any non-UK scheme.
[Note: Art. 16(7) of the DGSD]
A firm may discharge all its information-providing obligations in this Part:
(1) to depositors who use internet banking facilities, by way of electronic communications;
(2) to depositors who receive only paper statements, in writing in paper form; and
(3) to depositors who neither receive paper statements nor use internet banking, in a way that brings it to the attention of the depositor,
but it must provide the information on paper if so requested by the depositor.
[Note: Art. 16(8) of the DGSD]
Notification Requirements on Transfer to a Non-UK Scheme
If a firm which is a DGS member intends to transfer to become a member of a non-UK scheme, and cease to be a DGS member, it shall give at least six months’ notice to the FSCS and the PRA of its intention to make such a transfer. During the six month period, the firm shall remain a DGS member.
[Note: Art. 14(4) of the DGSD]
Deposit Compensation Information - Branches and Websites
23.A1
In this Chapter, references to “compensation sticker” and “compensation poster” are references to the sticker and poster set out in Annex 2 to this Part.
In this Chapter, references to “compensation leaflet” are:
(1) in the case of a DGS member, references to the FSCS’s standard leaflet with respect to its protection of deposits; and
(2) in the case of an incoming firm that it is a credit institution, references to a leaflet with respect to the protection of deposits by the compensation scheme of its home member state where such a leaflet is provided electronically and in English by the home state scheme or, where a leaflet is not available, a link to the home state scheme’s website.
A firm that accepts deposits under a single brand or trading name must prominently display the compensation sticker and compensation poster in each branch in the following ways:
(1) displaying the compensation sticker or compensation poster in the branch window; and
(2) displaying:
(a) the compensation sticker at each cashier window or desk; and
(b) the compensation poster inside the branch.
A firm that accepts deposits under multiple brands or trading names must prominently display the compensation sticker and compensation poster in each branch in the following ways:
(1) displaying the compensation poster in the branch window; and
Where the physical design of the branch means that it is not possible to comply with any of the requirements of 23.4 and 23.5, a firm must display the compensation sticker or the compensation poster in an alternative place in the branch that has equal prominence.
A firm that accepts deposits under a single brand or trading name must, in a way that best brings the information to depositors’ attention:
(1) display prominently (in electronic form) the compensation sticker; and
(2) provide from the compensation sticker an electronic link to the compensation leaflet.
A firm that accepts deposits under multiple brands or trading names must, in a way that best brings the information to depositors' attention:
(1) display prominently (in electronic form) the compensation poster; and
(2) provide from the compensation poster an electronic link to the compensation leaflet.
A firm must immediately provide the compensation leaflet to any person that requests further information about deposit protection.
A firm that accepts eligible deposits through a branch or branches established in other EEA States may provide the information required by this Chapter in the official language(s) of the EEA State (which may be either the compensation sticker, compensation poster or compensation leaflet in that language or the firm's own translation of that compensation sticker, compensation poster or compensation leaflet).
24.1 This Chapter applies to the FSCS.
The FSCS must administer the deposit guarantee scheme:
The FSCS must publish for depositors on its website all necessary information:
(1) on the operation of the deposit guarantee scheme; and
(2) on the process, eligibility, exclusions from protection and conditions for payment of compensation,
including all information specified in the information sheet as being available on its website.
[Note: Art.16(1) and Art. 16(3) of the DGSD]
The FSCS may agree to pay the reasonable costs of a depositor bringing or continuing insolvency proceedings against a DGS member in respect of eligible deposits (whenever instituted), if the FSCS is satisfied that those proceedings would help it to discharge its functions under this Part.
The FSCS must have regard to the need to use its resources in an efficient and economic way in carrying out its functions under this Part.
The FSCS must perform stress tests of its systems relating to the payment of compensation in respect of eligible deposits at least once every three years and more frequently where the FSCS considers it necessary, with the first such stress test taking place by 3 July 2017.
[Note: Art. 4(10) of the DGSD]
The FSCS shall use the information necessary to perform stress tests of its systems relating to the payment of compensation in respect of eligible deposits only for the performance of those tests and shall keep such information no longer than is necessary for that purpose.
[Note: Art. 4(11) of the DGSD]
The FSCS must take appropriate steps to ensure that depositors are informed of the process for receiving compensation as soon as a possible after the compensation date.
The FSCS must inform the PRA immediately if it becomes aware of any instance of a firm not complying with its obligations as set out in this Part.
[Note: Art. 4(4) of the DGSD]
The FSCS must correspond with a depositor in any one of:
(1) English; or
(2) any other official Union language or Welsh if that language is used by the firm which holds the eligible deposit when communicating with that depositor.
[Note: Art. 8(7) of the DGSD]
The FSCS must have in place sound and transparent governance practices.
[Note: Art. 4(12) of the DGSD]
The FSCS may provide that depositors may only submit claims for compensation in respect of deposits within a specified period of time (not less than three months) from the expiry of the applicable time period for payment of compensation as specified in 9.2 or the decision of the FSCS under 9.3 or 9.4.
The FSCS must, if requested by the depositor and subject to other applicable laws, give reasons to the depositor for any decision not to pay compensation in relation to some or all of their deposits.
The procedure established by the FSCS under this Chapter must satisfy the minimum requirements of procedural fairness and comply with the European Convention on Human Rights for the handling of any complaints of maladministration relating to any aspect of the operation of the deposit guarantee scheme.
[Note: Art. 9(1) and (3) of the DGSD]
Confidentiality, Information Sharing and Co-operation
The FSCS must ensure the confidentiality and the protection of the data pertaining to depositors’ accounts. The processing of such data must be carried out in accordance with the Data Protection Act 2018 and the GDPR.
[Note: Art. 4(9) of the DGSD]
The FSCS must exchange with host state schemes (in relation to a DGS member), information:
(1) relating to the DGS member’s compliance with this Part;
(2) necessary to prepare for a repayment of depositors, including markings made under Chapter 11;
(3) communicated to the FSCS by the PRA that the PRA has detected problems with a DGS member that are likely to give rise to the intervention of the deposit guarantee scheme.
The FSCS must have appropriate procedures in place to enable it to share information and communicate effectively with non-UK schemes, the members of such schemes, and bodies outside the UK. The FSCS shall inform the PRA of any cooperation agreement it enters into with a non-UK scheme.
[Note: Art. 14(6) of the DGSD]
In order to facilitate effective co-operation, the FSCS shall have written co-operation agreements in place with non-UK schemes. Such agreements shall take account of 26.1.
[Note: Art. 14(5) of the DGSD]
27.1 This Chapter applies only to the FSCS.
Payments in Respect of UK Branches of Incoming Firms and EEA Branches of DGS Members
Where the FSCS is required under the deposit guarantee scheme regulations to pay compensation on behalf of a non-UK scheme, the FSCS must inform the depositors concerned that the relevant credit institution is in default and of their right to compensation on behalf of the non-UK scheme. The FSCS may receive correspondence from those depositors on behalf of the non-UK scheme.
[Note: Art. 14(2) of the DGSD]
Where the FSCS is required, under this Part, to pay compensation to a depositor in respect of deposits held with a branch of a DGS member in an EEA state other than the UK, the FSCS must instruct the relevant non-UK scheme to make such payments on its behalf. The FSCS must provide the necessary funding prior to payout by the non-UK scheme and must compensate the non-UK scheme for costs incurred by the non-UK scheme with regard to acts done by the non-UK scheme in accordance with the instructions given by the FSCS.
28.1 This Chapter applies to the FSCS.
(1) the FSCS shall immediately and automatically be subrogated, subject to such conditions as the FSCS determines are appropriate, to all or any part (as determined by the FSCS) of the rights and claims in the UK and elsewhere of the compensation recipient against the DGS member and/or any third party (whether such rights are legal, equitable or of any other nature whatsoever and in whatever capacity the DGS member or third party is acting) in respect of or arising out of the compensation recipient’s deposits being unavailable;
(2) the FSCS may claim and take legal or any other proceedings or steps in the United Kingdom or elsewhere to enforce such rights in its own name or in the name of, and on behalf of, the compensation recipient or in both names against the relevant credit institution and/or any third party;
(3) the subrogated rights and claims conferred on the FSCS shall be rights of recovery and claims against the relevant credit institution and/or any third party which are equivalent (including as to amount and priority and whether or not the relevant DGS member is insolvent) to and not exceed the rights and claims that the compensation recipient would have had; and/or
(4) such rights and/or obligations (as determined by the FSCS) as between the firm and the compensation recipient arising out of the compensation recipient’s deposit being unavailable, shall be transferred to, and subsist between, another firm and the compensation recipient provided that the firm has consented (but the transferred rights and/or obligations shall be treated as existing between the firm and the FSCS to the extent of any subrogation, transfer or assignment for the purposes of (1) to (3) and 28.3).
[Note: Art. 9(2) of the DGSD]
(1) The FSCS may determine that, if it is necessary or desirable in conjunction with the exercise of the FSCS's powers under 28.2, that the compensation recipient shall be treated as having irrevocably and unconditionally appointed the chairman of the FSCS for the time being to be their attorney and agent and on their behalf and in their name or otherwise to do such things and execute such deeds and documents as may be required under such laws of the UK, another EEA State or any other state or country to create or give effect to such assignment or transfer or otherwise give full effect to those powers.
(1) The powers conferred on the FSCS in 28.2 and 28.3 to make a determination must be exercised in writing.
(2) An instrument by which the FSCS makes a determination must specify the provision under which it is made, the date and the time from which it takes effect and the DGS member and the eligible deposits or classes of eligible deposit in respect of which it applies.
(3) The FSCS must take appropriate steps to publish the determination as soon as possible after it is made. Such publication must be accompanied by a statement explaining the effect of 28.2 and the FSCS’s determination.
(4) Failure to comply with any requirement under this rule does not affect the validity of the determination.
(5) A determination by the FSCS under 28.2 may be amended, remade or revoked at any time and subject to the same conditions.
(1) The production of a copy of the determination purporting to be made by the FSCS under this Chapter:
Duties on the FSCS to Pursue Recoveries
If the FSCS takes a transfer of rights from the compensation recipient or is otherwise subrogated to the rights of the compensation recipient, it must pursue all and only such recoveries as it considers are likely to be both reasonably possible and cost effective to pursue.
If the FSCS decides not to pursue such recoveries and a compensation recipient wishes to pursue those recoveries and so requests in writing, the FSCS must comply with that request and assign the rights back to the compensation recipient.
Recoveries of Eligible Deposits - Return of Surplus to Compensation Recipient [deleted chapter]
Inactive date 03/07/2015
If the FSCS, in relation to a claim for eligible deposits, makes recoveries from the credit institution or any third party in respect of that eligible deposit the FSCS must:
(1) retain from those recoveries a sum equal to the "FSCS retention sum"; and
(2) as soon as reasonably possible after it makes the recoveries, pay to the compensation recipient (or, if not the depositor, as directed by the depositor), a sum equal to the "top up payment".
The FSCS must calculate the "FSCS retention sum" and the "top up payment" as follows:
(1) calculate the "recovery ratio", being the ratio of:
(a) the amount recovered by the FSCS through rights assigned or transferred or otherwise subrogated (less any deduction from that amount the FSCS may make to cover part or all of its reasonable costs of recovery and distribution); to
(b) the compensation recipient’s claim for eligible deposits against the credit institution less any liability of a home state scheme;
(2) subtract the sum paid by the FSCS as compensation and any amount paid or payable by a home state scheme to the compensation recipient from the total value of the compensation recipient’s overall claim for eligible deposits, to give the "compensation shortfall";
(3) apply the recovery ratio to the sum paid by the FSCS as compensation to the compensation recipient, to give the "FSCS retention sum"; and
(4) apply the recovery ratio to the compensation shortfall, to give the "top up payment".
Recoveries of Eligible Deposits: Return of Surplus to Compensation Recipient
If the FSCS, in relation to a claim for eligible deposits, makes recoveries from the credit institution or any third party in respect of that eligible deposit, it must:
(1) retain from those recoveries a sum equal to the aggregate of:
(a) the sum paid by the FSCS as compensation;
(b) any amount paid or payable by a home state scheme to the compensation recipient; and
(c) any amount the FSCS determines is appropriate to cover all or part of its reasonable costs of recovery; and
(2) as soon as reasonably possible after it makes the recoveries, pay any remaining sum to the compensation recipient (or, if not the depositor, as directed by the depositor or to any person subrogated to the claim of the depositor against the credit institution or to the rights of the depositor under this Part or to any person otherwise entitled to any remaining sum).
31.1 This Chapter applies only to the FSCS.
Funding - Available Financial Means
The FSCS must have in place adequate systems to determine the potential liabilities of the deposit guarantee scheme and ensure that the available financial means of the deposit guarantee scheme are proportionate to those liabilities.
[Note: Art. 10(1)(first paragraph) of the DGSD]
The FSCS must primarily use the available financial means of the deposit guarantee scheme to repay depositors pursuant to the deposit guarantee scheme.
[Note: Art. 11(1) of the DGSD]
32.1 This Chapter applies only to the FSCS.
Funding - Use of Existing Mandatory Contributions
If the PRA determines, in accordance with the deposit guarantee scheme regulations, that the FSCS is unable to raise a DGS compensation costs levy from DGS members to meet the liabilities of the deposit guarantee scheme, the FSCS may borrow an amount equal to the amount of such mandatory contributions in order to meet the liabilities of the deposit guarantee scheme.
[Note: Art. 10(4) (third paragraph) of the DGSD]
The FSCS must impose a DGS compensation costs levy on DGS members sufficient to repay any amounts equal to mandatory contributions borrowed in accordance with Article 10 (4) of the DGSD within a reasonable time and in accordance with repayment deadlines under the applicable loan agreement and 34.3.
[Note: Art. 10(4) (third paragraph) and Article 10(2) (second paragraph) of the DGSD]
33.1 This Chapter applies only to the FSCS.
The FSCS may, at any time, impose on DGS members a:
(1) DGS compensation costs levy;
(2) DGS management expenses levy; or
(3) legacy costs levy.
The maximum aggregate amount of DGS compensation costs, legacy costs and DGS specific costs for which the FSCS can levy class A in any one financial year of the deposit guarantee scheme is limited to £1,500,000,000 less whatever DAS compensation costs and DAS specific costs the FSCS has imposed on class J in the same year.
The maximum amount of DGS compensation costs for which the FSCS can levy DGS members per calendar year must not exceed 0.5% of total covered deposits (excluding temporary high balances) of all DGS members. The FSCS may in exceptional circumstances and with the prior consent of the PRA impose higher levies.
[Note: Art. 10(8) of the DGSD]
34.1 This Chapter applies only to the FSCS.
Funding - DGS Compensation Costs Levy
The FSCS must raise available financial means by imposing a DGS compensation costs levy on DGS members at least once in each financial year for expenditure incurred or expected in the period of 12 months following 1 July in that year.
[Note: Art. 10(1)(second paragraph) of the DGSD]
(1) If, after the available financial means of the deposit guarantee scheme have reached the target level for the first time, the available financial means have been reduced to less than two-thirds of the target level, the FSCS must impose regular DGS compensation cost levies on DGS members at a level allowing the target level to be reached again within six years.
(2) The regular levies imposed under (1) shall take due account of the phase of the business cycle and the impact that procyclical contributions may have when setting annual contributions.
[Note: Art. 10(2) (third and fourth paragraphs) of the DGSD]
DGS compensation cost levies imposed on DGS members to raise the available financial means of the deposit guarantee scheme must be based on the amount of covered deposits (excluding temporary high balances) and the FSCS’s assessment of the degree of risk incurred by the respective DGS member.
[Note: Art. 13(1) of the DGSD]
The FSCS may decide that a DGS member must pay a minimum contribution under a DGS compensation costs levy, irrespective of the amount of its covered deposits.
[Note: Art. 13(1) (fifth paragraph) of the DGSD]
The FSCS may only impose a DGS compensation costs levy on DGS members if the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account expenditure already incurred, actual and expected recoveries and the level of the FSCS’s expected expenditure in respect of DGS compensation costs in the 12 months immediately following the levy.
The FSCS may include in a DGS compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payout was not made in bad faith.
35.1 This Chapter applies only to the FSCS.
Funding - DGS Management Expenses Levy
The FSCS may only impose a DGS management expenses levy on DGS members if it has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account expenditure already incurred, actual and expected recoveries and the level of the FSCS’s expected expenditure in respect of those expenses in the financial year of the deposit guarantee scheme in relation to which the levy is imposed.
The FSCS must apply any amount collected from a DGS management expenses levy to the payment of management expenses and, as such, must not treat such funds as available financial means of the deposit guarantee scheme.
36.1 This Chapter applies only to the FSCS.
Funding - Legacy Costs Levy
The FSCS must not impose a legacy costs levy on Northern Ireland credit unions in respect of legacy costs incurred before 31 March 2012.
The FSCS must apply any amount collected from a legacy costs levy to the payment of legacy costs and, as such, must not treat such funds as available financial means of the deposit guarantee scheme.
The FSCS must allocate any legacy costs levy to DGS members subject to the levy limit for class A under 33.3.
The FSCS must calculate each DGS member’s share of a legacy costs levy by:
(1) identifying the legacy costs allocated to class A;
(2) calculating the DGS member’s class A tariff base as a proportion of the total class A tariff base of all DGS members (excluding Northern Ireland credit unions), using the statement of business most recently supplied;
Legacy cost levies must be based on the amount of covered deposits (excluding temporary high balances) incurred by the respective DGS member.
A firm which becomes a DGS member part way through a financial year of the deposit guarantee scheme will not be liable to pay a share of a legacy costs levy made in that year.
41.5 applies to the calculation of a DGS member’s legacy costs levy and its class A tariff base as it applies to the calculation of its DGS specific costs levy.
37.1 This Chapter applies only to the FSCS.
If the FSCS invests any available financial means of the deposit guarantee scheme, it must invest it in a low-risk and sufficiently diversified manner.
[Note: Art. 10(7) of the DGSD]
The FSCS must hold any amount collected from a DGS specific costs levy, DGS compensation costs levy or legacy costs levy to the credit of class A.
Interest earned by the FSCS in the management of funds held to the credit of class A must be credited to that class, and must be set off against the DGS management expenses, DGS compensation costs and legacy costs allocated to that class.
(1) the funds held to the credit of class A; and
(2) the liabilities of class A.
38.1 This Chapter applies only to the FSCS.
If a DGS member’s share of a DGS levy or an additional administrative fee or interest under 45.3 would be so small that, in the opinion of the FSCS, the costs of collection would be disproportionate to the amount payable, the FSCS may treat the DGS member as if its share of the levy or additional administrative fee amounted to zero.
The calculation of DGS levies must take into account previous levies, where funds raised in anticipation of meeting liabilities prove either more or less than the amount actually required.
The FSCS may adjust the calculation of a DGS member’s share of any DGS levy to take proper account of:
(2) amounts that the FSCS has not been able to recover from DGS members as a result of 33.3 or 33.4; or
(3) amounts that the FSCS has not been able to recover from DGS members after having taken reasonable steps; or
(4) payments deferred under 46.2, the calculation of levies after an acquisition of deposit business under Chapter 39 or Chapter 40, calculations under 41.6; or
The FSCS must not adjust the calculation of a DGS member’s share of any DGS levy under 38.4 on the grounds that it would be inequitable for that firm to pay that share or part of it or on the grounds that it would be inequitable for the FSCS to retain that share or part of it. Any such claim should be dealt with under Chapter 46.
39.1 This Chapter applies only to the FSCS.
Funding - Business Acquisitions from DGS Members
(1) a DGS member (A) assumes a liability to repay deposits held by another DGS member (B);
(2) B is no longer liable to pay a DGS levy to the FSCS; and
(3) the assumption of liability takes place after the date to which, or as of which, A's most recent statement of business is drawn up,
the FSCS must require A to pay an additional amount equal to the levy that would have been payable by B in relation to the relevant business and class A (including an adjustment for the FSCS’s assessment of the degree of risk incurred by B) if the acquisition had not taken place and B had remained liable to pay DGS levies. The amount is based on the B’s most recent statement of business.
This Chapter only applies with respect to those financial years of the FSCS for which A's levies are calculated on the basis of a statement of business drawn up to a date, or as of a date, before the assumption of liability took place.
Funding - Business Acquisitions from Non-DGS Members
A DGS member’s share of a DGS management expenses levy consists of one or more of: (1) a share of a DGS base costs levy and (2) a share of a DGS specific costs levy.
The FSCS must ensure that each DGS member’s share of a DGS management expenses levy separately identifies the firm’s share of the DGS base costs levy and DGS specific costs levy.
The FSCS must allocate any DGS specific costs levy to class A up to the levy limit for class A under 33.3.
The FSCS must calculate a DGS member’s share of a DGS specific costs levy by:
(1) identifying DGS specific costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the deposit guarantee scheme allocated to class A, but not yet levied;
(2) calculating the DGS member’s class A tariff base as a proportion of the total class A tariff base, using the statement of business most recently supplied; and
The FSCS must not require a firm (A) which becomes a DGS member part way through a financial year of the deposit guarantee scheme to pay a share of a DGS specific costs levy until the financial year of the FSCS following the FSCS financial year in which A became a DGS member, at which time A’s share of a DGS specific costs levy must be calculated under 41.6.
(1) Unless otherwise provided in (2), A’s class A tariff base is calculated, where necessary, using a projected valuation of the business to which the tariff relates
(a) If A’s class A tariff base is calculated using data from a period that begins on or after it became a DGS member, that data must be used to calculate A’s class A tariff base
(b) If A’s class A tariff base satisfies the following conditions, it must be calculated under (c)
(i) A became a DGS member between 1 April and 31 December inclusive; and
(ii) A’s class A tariff base, but for this rule, is calculated by reference to the financial year ended in the calendar year ending 31 December or the twelve months ending 31 December before the FSCS financial year.
(c) If A satisfies the conditions in (b) it must calculate its class A tariff base as follows:
(ii) the tariff is calculated by reference to the period beginning on the date it became a DGS member and ending on the 31 December before the start of the FSCS financial year; and
(iii) the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the DGS member became a DGS member to the 31 December, as the case may be.
(d) Where A is required to use the method in (c) it must notify the FSCS of its intention to do so by the date specified in 44.2.
(e) Where A is required to use actual data under this rule, Chapter 43 is disapplied, to the extent it is incompatible, in relation to the calculation of that DGS member’s valuation date in its second financial year.
42.1 This Chapter applies only to the FSCS.
Funding - DGS Compensation Costs
The FSCS must allocate any DGS compensation costs levy to DGS members in accordance with the amount of DGS compensation costs arising from, or expected to arise from claims in respect of covered deposits up to the levy limit of class A under 33.3.
The FSCS must calculate each DGS member’s share of a DGS compensation costs levy by:
(1) identifying the DGS compensation costs allocated to class A;
(2) calculating, in relation to class A, the DGS member’s tariff base as a proportion of the total tariff base of all DGS members in class A, using the statement of business most recently supplied;
(3) applying the proportion calculated in (2) to the figure in (1); and
(4) applying an adjustment for the degree of risk incurred by the DGS member to the product of the calculation in (3).
When calculating a DGS member’s share of a DGS compensation costs levy or DGS specific costs levy allocated to class A, the FSCS must use the class A tariff base.
A firm which becomes a DGS member part way through a financial year of the deposit guarantee scheme will not be liable to pay a share of a DGS compensation costs levy made in that year.
41.5 applies to the calculation of a DGS member’s DGS compensation costs levy and its tariff base as it applies to the calculation of its specific costs levy.
Funding - Class A Tariff Base Calculation
The Class A tariff base is:
(1) covered deposits (excluding temporary high balances) as at 31 December except that, where the covered deposit is a dormant account, the applicable tariff base is covered deposit multiplied by 0.2 as at 31 December; and
(2) the total balance of any deposits in any account which holds funds to which the account holder is not absolutely entitled but may exclude the value of any funds which the firm has confirmed are not covered deposits.
The class A tariff base calculation must be made on the basis of the information that the firm would have to include in its single customer views. The information must be of the extent and standard required if the firm was preparing the single customer view in accordance with the SCV requirements as at the valuation date for the tariff base.
A firm must also include in its class A tariff base calculation the total balance of any deposits in any:
(1) not active account; or
(2) account which holds funds to which the account holder is not absolutely entitled.
44.1 This Chapter does not apply to the FSCS.
A firm must provide the FSCS by end of February each year (or, if it has become a DGS member part way through the financial year, by the date requested by the PRA) with a statement of the total amount of business (measured in accordance with the class A tariff base) which it conducted, in respect of the most recent valuation period ending before the relevant year in relation to class A.
A new DGS member must calculate its class A tariff base in accordance with 41.6.
If a firm does not submit a complete statement of business by the date on which it is due in accordance with 44.2 and any prescribed submission procedures:
(1) The firm must pay an administrative fee of £250 (but not if it is already subject to an administrative fee by the PRA for the same financial year); and
(2) The DGS compensation costs levy and any DGS specific costs levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by a factor of 1.10 (or if it has become a DGS member part way through a financial year, on the basis of the information provided to the PRA and used to calculate PRA fees or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known).
45.1 This Chapter does not apply to the FSCS.
(1) DGS management expenses levy; and
(2) DGS compensation costs levy and legacy costs levy allocated to class A.
If a firm does not pay the total amount of its share of a DGS levy, before the end of the date on which it is due, it must pay an additional amount as follows:
(1) if the DGS levy was not paid in full before the end of the due date, an administrative fee of £250; and
(2) interest on any unpaid part of the DGS levy or administrative fee at the rate of 5% per annum above the Official Bank Rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.
Funding - Overpayments and Deferral of Payments
The FSCS may reduce, remit or refund any overpaid amounts paid by a DGS member in respect of a particular period, due to a mistake of law or fact by the DGS member provided that the claim is made by the DGS member not more than two years after the beginning of the period to which the overpayment relates.
The PRA may defer, in whole or in part, a DGS member’s obligation to pay a DGS compensation costs levy or a legacy costs levy if the PRA considers that such contributions would jeopardise the liquidity or solvency of the firm. Such deferral shall not be granted for a longer period than six months but may be renewed upon request of the firm.
Any contributions deferred pursuant to 46.2 shall be paid when the payment no longer jeopardises the liquidity and solvency of the firm.
47.1 This Chapter does not apply to the FSCS.
A firm must pay its share of a DGS levy in one payment.
A firm’s share of a DGS levy is due on, and payable within, 30 days of the date when the invoice is issued.
A firm must pay its share of a DGS levy by either direct debit, credit transfer (e.g. BACS or CHAPS), cheque, Maestro, Visa Debit or by credit card (Visa/Mastercard/American Express only).
If a firm ceases to be a DGS member part way through a financial year of the deposit guarantee scheme:
(2) the FSCS may make one or more levies upon it (which may be before or after the firm has ceased to be a DGS member but must be before it ceases to be a firm) for the costs which it would have been liable to pay had the FSCS made a levy on all DGS members in the financial year it ceased to be a DGS member.
48.1 This Chapter applies only to the FSCS.
Funding - Transfer of Levies
If a firm ceases to be a DGS member and joins a non-UK scheme, the FSCS must transfer the contributions paid by that firm to the available financial means of the deposit guarantee scheme during the 12 months preceding the end of the membership to the relevant non-UK scheme.
48.2 does not apply if the firm has been excluded from the deposit guarantee scheme pursuant to Article 4(5) of the DGSD.
If some of the activities of a DGS member are transferred to another Member State and become subject to a non-UK scheme, the contributions paid by that firm during the 12 months preceding the transfer shall be transferred to the relevant non-UK scheme in proportion to the amount of covered deposits transferred.
[Note: Art. 14(3) of the DGSD]
49.1 This Chapter does not apply to the FSCS.
Transitional Provisions – Marking Effectiveness Report [deleted chapter]
Inactive date 01/12/2016
In this Chapter, the following definition shall apply:
marking effectiveness report
means a report from a firm’s governing body confirming that the firm satisfies the marking requirements and containing the information required by 49.7; and
means the requirements in 11.1 and 11.2.
A firm must provide the PRA with a marking effectiveness report within three months of receiving a Part 4A permission to accept deposits.
A firm must notify the PRA and FSCS of a material change in the firm’s systems to satisfy the marking requirements within 3 months of the change.
The notification in 49.4 must be accompanied by a statement signed on behalf of the firm’s governing body confirming that the firm’s systems satisfy the marking requirements.
A firm must provide a marking effectiveness report to the PRA or FSCS promptly upon request by the PRA or FSCS.
A firm’s marking effectiveness report must contain:
(a) the firm’s systems or to satisfy the marking requirements and how they have been implemented (the firm’s systems include any manual systems used by the firm and any code or keys used internally by the firm to mark eligible deposits and accounts which are held on behalf of beneficiaries and which contain or may contain eligible deposits);
(b) the testing undertaken with respect to the robustness of the firm’s systems;
(c) the number of marked accounts that contain eligible deposits;
(d) the firm’s plan for the ongoing maintenance of its systems;
(e) how the firm’s governing body will ensure that they remain satisfied that the firm’s systems continue to satisfy the marking requirements; and
(f) any other factors or dependencies relevant to the design and operation of the firm’s systems or to an assessment of whether the systems satisfy the marking requirements;
(2) a statement signed on behalf of the firm’s governing body confirming that the firm satisfies the marking requirements;
(3) a statement of whether the firm’s marking effectiveness report has been reviewed by external auditors, and if so, a statement of the findings of that review; and
(4) a statement of whether there has been a material change to the firm’s systems since the date of the firm’s previous marking effectiveness report.
50.1 This Chapter does not apply to the FSCS.
Transitional Provisions – Single Customer View [deleted chapter]
This Chapter does not apply in relation to an eligible deposit:
(1) of a large company;
(2) contained in an account that is not active;
(3) contained in an account that holds funds to which a depositor is not absolutely entitled; or
(4) of a small local authority.
means a body corporate which does not qualify as a small company under section 382 of the Companies Act 2006
means a single, consistent view of a depositor’s aggregate eligible deposits with a firm which contains the information required by 50.11;
A firm must be able to provide to the PRA or the FSCS its single customer view within 72 hours of a request being made by the PRA or FSCS.
A firm must be able to provide the single customer view by secure electronic transmission and in a format which is readily transferable to and compatible with the FSCS’s systems.
A firm must ensure that the electronic systems which produce the single customer view must:
(1) be capable of automatically identifying the amount of covered deposits payable to each depositor; and
(2) include a check facility which allows the firm to identify any portion of an eligible deposit that exceeds the coverage level provided for in 4.2.
A firm that operates fewer than 5,000 accounts which contain eligible deposits on 3 July 2015 may:
(1) elect that 50.5 and 50.6 do not apply; and
(2) revoke any such election.
A firm that revokes an election, may not make a further election under 50.7.
A firm that operates 5,000 or more accounts which contain eligible deposits on 3 July 2015 may not make an election under 50.7 if, on a future date, it operates less than 5,000 accounts which contain eligible deposits.
The election or revocation of the election takes effect only where the firm provides written notice to the PRA of the election or revocation.
A firm must ensure that a single customer view contains all the information set out in the table below.
Single customer view record number Unique customer identifier
Title Title [if applicable and where held by the firm]
Customer 1st Forename 1st Forename [if applicable]
Customer 2nd Forename 2nd Forename [if applicable and where held by the firm]
Customer 3rd Forename 3rd Forename [if applicable and where held by the firm]
Customer Surname [or company name or name of account holder] Surname [or company name or name of account holder]3
Previous Name Any former name of account holder [where held by the firm]
National Insurance number National Insurance number, where held by the firm
EITHER Format A
House number House number/Premise name
Locality Locality [where held by the firm]
County County [where held by the firm]
Postcode Postcode [where used by a country]
Country Country [for countries outside the UK]
OR Format B
ADDRESS LINE 1 As required
ADDRESS LINE 2 As required
ADDRESS LINE 3 As required
ADDRESS LINE 4 As required
ADDRESS LINE 5 As required
ADDRESS LINE 6 As required
Details of account(s)
Account title Surname, first name, any other initials or middle name identifier or company name or name of account holder
Account number Unique number for this account
Product type Type of product or service - instant access/term
Account holder indicator This field applies to joint or multiple accounts. It must identify whether the customer is the primary account holder or secondary account holder (or other such status)
Account status code Active accounts only to be included
Account balance in sterling Account balance including any interest or premium attributable, at end of business on:
(a) the compensation date;
(b) the date of request from the FSCS or the PRA
Aggregate balance across all accounts in sterling Account balance including any interest or premium attributable, at end of business on:
(b) the date of request from the PRA or FSCS
Compensatable amount The amount to be compensated subject to the limit check that must be performed by the firm under 50.6(2) (this could be lower than the aggregate balance across all accounts if this exceeds the coverage level provided for in 4.2.
Where a depositor holds more than one account, the section in the single customer view which sets out “Details of account(s)” must be completed for each account held.
The amount inserted into the single customer view as the account balance and aggregate balance across all accounts must be the total of the principal plus any interest or premium attributable up to the compensation date (or in the absence of a compensation date, the date on which the FSCS or PRA makes a request to the firm to provide the single customer view).
If the account is a structured deposit account where the return cannot be calculated until the maturity date because the return is based on growth of an index as determined at a future date, the figure inserted into the single customer view as the account balance must be the total of the principal, any attributable contractual minimum return and any interest accrued prior to the product start date.
51.1 This Chapter does not apply in relation to an eligible deposit:
(2) contained in an account that is not active; or
(3) contained in an account that holds funds to which a depositor is not absolutely entitled.
Transitional Provisions – Single Customer View Effectiveness Report [deleted chapter]
means a report from a firm’s governing body confirming that the firm’s systems satisfy the requirements in Chapter 50 with respect to single customer views and containing the information required by 51.7.
A firm must provide the PRA with an SCV effectiveness report within three months of receiving a Part 4A permission to accept deposits.
A firm must notify the PRA and FSCS of a material change in the firm’s systems to satisfy the requirements in Chapter 50 with respect to single customer views, within 3 months of the change.
The notification in 51.4 must be accompanied by a statement signed on behalf of the firm’s governing body confirming that the firm’s systems satisfy the requirements in Chapter 50 with respect to single customer views.
A firm must provide a SCV effectiveness report to the PRA or FSCS promptly upon request by the PRA or FSCS.
A firm’s SCV effectiveness report must contain, to the extent applicable:
(a) the firm’s systems to satisfy the requirements in Chapter 50 with respect to single customer views and how they have been implemented (the firm’s systems include any manual systems used by the firm and any code or keys used internally by the firm so that the FSCS can easily identify eligible deposits and accounts which are held on behalf of beneficiaries and which contain or may contain eligible deposits);
(b) how the firm proposes to transfer to the PRA or FSCS a single customer view for each depositor with eligible deposits including specifying the transfer method and format;
(c) the testing undertaken with respect to the robustness of the firm’s systems (including information on preparation of the single customer views in stressed scenarios, frequency of testing and where relevant, reconciliation with core systems);
(d) the number of single customer views;
(e) the firm’s plan for the ongoing maintenance of its systems;
(f) how the firm’s governing body will ensure that they remain satisfied that the firm’s systems continue to satisfy the requirements in Chapter 50 with respect to single customer views;
(g) how the check facility required by 50.6(2) is applied;
(h) any other factors relevant to the design of the firm’s systems or to an assessment of whether the systems satisfy the requirements in Chapter 50 with respect to single customer views;
(i) any dependencies in creating the single customer views (such as reliance on group systems); and
(j) the procedures and controls that a firm has in place regarding the production of the single customer views (such as secure storage and an indication of how key person dependencies are managed);
(2) a statement signed on behalf of the firm’s governing body confirming that the firm satisfies the requirements in Chapter 50 with respect to single customer views;
(3) the date when the firm’s systems last produced:
(a) single customer view for each depositor; and
(b) a sample of single customer views and the sample size;
(4) a statement of whether the firm’s SCV effectiveness report has been reviewed by external auditors, and if so, a statement of the findings of that review; and
(5) a statement of whether there has been a material change to the systems since the date of the firm’s previous SCV effectiveness report>.
A firm to which 50.5 and 50.6 applies must provide the FSCS with a representative sample of 10% of its single customer views or 10,000 of its single customer views (whichever is the smaller number) within three months of receiving a Part 4A permission to accept deposits.
The representative sample must include all types of account which contain eligible deposits (where the firm operates under more than one trading name the sample must include all types of account which contain eligible deposits for each trading name).
The FSCS must advise the PRA, within six months of receiving the information required by 51.6 whether the information provided by the firm’s systems to satisfy the requirements in Chapter 50 with respect to single customer views is suitable to be submitted to the FSCS and is compatible with the FSCS’s systems.
Transitional Provisions – Class A Tariff Base Calculation [deleted chapter]
Until 1 December 2016:
(1) the class A tariff base in 43.1 excludes from covered deposits any eligible deposit of a large company and a small local authority; and
(2) in Chapter 43.2, the reference to single customer view is a reference to a single customer view compiled in accordance with the requirements in Chapter 50 and which contains the information set out in 50.11 and the definitions of single customer view and SCV requirements in 1.4 are modified accordingly.
Transitional Provisions – Application of COMP
means the Compensation Sourcebook of the PRA Handbook in force immediately before 3 July 2015
has the definition in the Glossary in force immediately before 3 July 2015
The rules in COMP continue to apply to the FSCS in relation to a protected deposit claim in respect of a relevant person in default before 3 July 2015.
Transitional Provisions - Firms’ Additional Disclosure Obligations
As soon as practicable and in any event by 1 September 2015, a firm must provide to a depositor the coverage information set out in Annex 4 to this Part.
[Note: Art. 19(2) of the DGSD]
As soon as practicable after 31 December 2015 and in any event by 1 July 2016, a firm must:
(1) provide to a depositor:
(a) the information sheet; and
(b) the exclusions list; and
(2) if applicable, inform the depositor of the exclusions from deposit guarantee scheme protection that fall within 2.2(4)(b) and 2.2(4)(k).
[Note: Art. 16(3) of the DGSD]
Transitional Provisions - Firms’ Disclosure Obligations (Supervening Rules) [deleted chapter]
Inactive date 03/07/2016
A firm will not breach the following rules if it complies with those rules as soon as practicable and in any event from 1 January 2016:
(1) 17.1(1); and
(2) 17.1(4).
The following provisions shall not apply to a firm until 1 January 2016:
(1) 16.1 to 16.3; and
(2) 17.1(2) to 17.1(3).
17.2 shall not apply to a firm until 2 July 2016.
Transitional Provisions – Deposit Compensation Information – Branches and Websites (Supervening Rules) [deleted chapter]
Inactive date 02/01/2016
This Chapter does not apply to a UK branch of a euro firm or the FSCS.
A firm will not breach the compensation sticker and poster rules if it complies with those rules soon as practicable and in any event from 1 September 2015.
A firm will not breach the compensation leaflet rules if it complies with those rules as soon as practicable and in any event from 1 January 2016.
57.1 This Chapter does not apply to the FSCS.
Transitional Provisions – Withdrawals
A firm must, as soon as reasonably practicable and in any event no later than 1 October 2015, notify any affected person identified in accordance with 57.4 about the change to the coverage level.
A notification under 57.2 must include:
(1) a statement explaining that on 1 January 2016, the affected person’s eligible deposits will be covered by the FSCS up to the coverage level; and
(2) an explanation of how the affected person may request to reduce their aggregate eligible deposits in accordance with 57.6.
(1) must identify its affected persons for the purposes of 57.2 by reference to a date that is as close as reasonably practicable to the date on which it starts sending those notifications; and
(2) may exclude restricted persons from the notification in 57.2.
57.6 applies where the following conditions are met:
(1) a person (or a person who has authority to act on behalf of that person) makes a request to a firm that has the effect of being a request to reduce that person’s aggregate eligible deposits;
(2) the request is made on or before 31 December 2015;
(3) that person is an affected person on the date on which the request is made; and
(4) the request is not made subsequent to a previous payment made under 57.6.
If a firm receives a request that meets the conditions in 57.5, it must, by the earlier of:
(1) two months of receipt of that request; and
(2) 31 January 2016,
enable the affected person to reduce their aggregate eligible deposits by only an amount determined in accordance with 57.7 and 57.8 without charge, penalty or loss of interest.
The amount referred to in 57.6 in relation to an affected person is the lesser of:
(1) the amount requested in accordance with 57.5(1);
(2) the larger of:
(a) the excess above the coverage level held by that person at the date of that request; or
(b) the excess above the coverage level that is reasonably likely, taking account of the accrual of interest or additional credits required by that person’s contract with the firm, to be held by that person, on:
(i) 1 January 2016; or
(ii) the maturity of an account or product held by that person at the date of that request; and
(3) £10,000.
In the case of a joint account, the amount in 57.7 shall be calculated for each affected person on the basis set out in 5.4 and 5.5.
Where a request is made before 1 October 2015 that has not been actioned by the firm at that date, but which meets the conditions in 57.5, the time period in 57.6(1) is deemed to commence on 1 October 2015.
A firm may determine the account or product from which the eligible deposits are withdrawn under 57.6, except it may not determine the eligible deposits are withdrawn from a transactional account without the consent of the affected person (or a person who has authority to act on behalf of the affected person).
57.6 does not:
(1) prevent the firm:
(a) calculating interest in respect of the period after the reduction under that rule to reflect the reduced amount of the deposit; or
(b) adjusting the rate of interest in respect of the period after the reduction under that rule in accordance with a pre-existing link in the deposit contract between the rate of interest and the size of the deposit;
(2) prevent a credit union calculating a discretionary dividend on a share account by reference to the affected person’s balance on a single reference date if this is its usual practice; or
(3) require a firm to enable a restricted person to reduce their aggregate eligible deposits.
A contravention of 57.6 by a firm is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
A person who is not a private person may exercise the right afforded by 57.12, if a case prescribed by regulation 6(2) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 for the purposes of section 138D(4) Financial Services and Markets Act 2000 applies,
57.6 comes into force on 1 October 2015.
means a “relevant person”, within the meaning given in regulation 7A(4) of the deposit guarantee scheme regulations, whose aggregate eligible deposits:
(1) are greater than the coverage level (unless the firm is required to make payments to or to the order of that person before 1 January 2016 that are likely to result in that person ceasing to have aggregate eligible deposits over the coverage level on that date); or
(2) are reasonably likely, on:
(a) 1 January 2016; or
(b) the maturity of an account or product held by that person,
to be greater than the coverage level, taking account of the accrual of interest or additional credits required by that person’s contract with the firm; and
means the coverage level set out in 4.2, as that provision is applied on 1 January 2016;
means an affected person in relation to whom a firm will only be able to comply with 57.6:
(a) in contravention of a legal requirement on the firm;
(b) in contravention on the firm’s policy on managing the risk of “money laundering”, within the meaning given in the FCA Handbook; or
(c) by allowing the withdrawal of a deposit that is held as collateral by the firm for an amount owed to it (provided that the firm has given the affected person or a person for whom the affected person is providing surety the option of repaying the indebtedness and reducing the collateral deposit under 57.6 by equivalent amounts).
Transitional Provisions – Coverage Level [deleted chapter]
58.1 This Chapter applies with effect from 30 January 2017 and is deleted with effect from 1 July 2017.
This Chapter applies with effect from 30 January 2017 and is deleted with effect from 1 July 2017.
SCV, continuity of access and information rule amendments
means the amendment of this Part so as to:
(1) omit 12.A1, 12.A2, 13.A1, 13.A2, 16.A1, 17.A1, 18.A1 and 23.A1; and
(2) replace references to “£75,000” in Chapter 12, Annex 1 (Information Sheet (Chapter 16)) and Annex 2 (Content of Compensation Stickers and Posters (Chapter 23)) with references to “£85,000”.
A firm shall, as soon as practicable after 30 January 2017 and in any event on or before 30 June 2017, comply with this Part as if the SCV, continuity of access and information rule amendments had been made.
Inactive date 30/06/2017
Eligible deposits in [insert name of firm] are protected by: the Financial Services Compensation Scheme (“FSCS”)1
Limit of protection: £85,000 per depositor per bank / building society / credit union2
[where applicable]The following trading names are part of your bank / building society / credit union:
[insert all trading names which operate under the same licence]
If you have more eligible deposits at the same bank / building society / credit union: All your eligible deposits at the same bank / building society / credit union are “aggregated” and the total is subject to the limit of £85,000.2
Reimbursement period in case of bank, building society or credit union’s failure: 20 working days4
To contact [insert name of firm] for enquiries relating to your account:
To contact the FSCS for further information on compensation: [insert name of firm and contact details]
10th Floor Beaufort House
Acknowledgement of receipt by the depositor:
Additional information (all or some of the below)
If a covered deposit is unavailable because a bank, building society or credit union is unable to meet its financial obligations, depositors are repaid by a Deposit Guarantee Scheme. This repayment covers a maximum of £85,000 per bank, building society or credit union. This means that all eligible deposits at the same bank, building society or credit union are added up in order to determine the coverage level. If, for instance a depositor holds a savings account with £80,000 and a current account with £20,000, he or she will only be repaid £85,000.
[only where applicable] This method will also be applied if a bank, building society or credit union operates under different trading names. [insert name of the account holding bank, building society or credit union] also trades under [insert all other trading names of the same bank, building society or credit union]. This means that all eligible deposits with one or more of these trading names are in total covered up to £85,000.
(a) certain transactions relating to the depositor’s current or prospective only or main residence or dwelling;
(b) a death, or the depositor’s marriage or civil partnership, divorce, retirement, dismissal, redundancy or invalidity;
(c) the payment to the depositor of insurance benefits or compensation for criminal injuries or wrongful conviction.
Where the FSCS cannot make the repayable amount available within 7 working days, it will, from 1 June 2016 until 31 December 2023, ensure that you have access to an appropriate amount of your covered deposits to cover the cost of living (in the case of a depositor which is an individual) or to cover necessary business expenses or operating costs (in the case of a depositor which is not an individual or a large company) within 5 working days of a request.
If you have not been repaid within these deadlines, you should contact the Deposit Guarantee Scheme since the time to claim reimbursement may be barred after a certain time limit. Further information can be obtained under http://www.fscs.org.uk.
1 The compensation stickers must contain the following statements only:
Northern Ireland credit unions
An overseas firm that:
(b) has a Part 4A permission that includes accepting deposits
(1) "Your eligible deposits with [insert name of firm] are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
Please ask/click here [delete as appropriate] for further information or visit www.fscs.org.uk ."
As an alternative, for credit unions or Northern Ireland credit unions that accept deposits under a single brand or trading name:
"Your eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please ask/click here [delete as appropriate] for further information or visit www.fscs.org.uk "
Incoming firm that is a credit institution
(2) "Your eligible deposits with [insert name of firm] are protected up to a total of [insert 100,000 euro or home state equivalent] by [insert name of compensation scheme] the [insert home state of compensation scheme] deposit guarantee scheme and are not protected by the UK Financial Services Compensation Scheme. Any deposits you hold above the [insert 100,000 euro or home state equivalent] limit are unlikely to be covered.
Please ask/click here [delete as appropriate] for further information or visit [insert website address of scheme]."
2 The compensation posters must contain the following statements only:
(1) Firms that accept deposits under a single brand or trading name
"Your eligible deposits with [insert name of firm] are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
Please ask/click here [delete as appropriate] for further information or visit www.fscs.org.uk"
As an alternative, for credit unions or Northern Ireland credit unions that accept deposits under a single brand or trading name: "Your eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
(2) Firms that accept deposits under multiple brands or trading names
"Your eligible deposits with [insert name of firm] are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: [insert names of brands as appropriate]. Any total deposits you hold above the limit between these brands are unlikely to be covered.
(3) Incoming firm that is a credit institution and accepts deposits under a single brand or trading name
"Your eligible deposits with [insert name of firm] are protected up to a total of [insert 100,000 euro or home state equivalent] by [insert name of compensation scheme] the [insert home state of compensation scheme] deposit guarantee scheme and are not protected by the UK Financial Services Compensation Scheme. Any deposits you hold above the [insert 100,000 euro or home state equivalent] limit are unlikely to be covered. Please ask/click here [delete as appropriate] for further information or visit [insert website address of scheme]."
Incoming firm that accepts deposits under multiple brands or trading names
"Your eligible deposits with [insert name of firm] are protected up to a total of [insert 100,000 euro or home state equivalent] by [insert name of compensation scheme] the [insert home state of compensation scheme] deposit guarantee scheme and are not protected by the UK Financial Services Compensation Scheme. This limit is applied to the total of any deposits you have with the following: [insert names of brands as appropriate]. Any total deposits above the [insert 100,000 euro or home state equivalent] limit are unlikely to be covered. Please ask/click here [delete as appropriate] for further information or visit [insert website address of scheme]."
3 Each of the statements in 1 and 2 must appear as written with the first and second statements on separate lines. The second statement must appear in smaller font.
4 In 1(1), 2(1) and 2(2), the limit figures must appear in bold font.
Section A (up to and including 31 December 2016)
(1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, bank building society or credit union.
(2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
(3) It is a deposit made by a depositor which is one of the following:
public authority, other than a small local authority.
The following are deposits, categories of deposits or other instruments which will no longer be protected from 3 July 2015:
deposits of a credit union to which the credit union itself is entitled
deposits which can only be proven by a financial instrument2 unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which exists in a Member State on 2 July 2014)
deposits of a collective investment scheme which qualifies as a small company3
deposits of an overseas financial services institution which qualifies as a small company4
deposits of certain regulated firms (investment firms, insurance undertakings and reinsurance undertakings) which qualify as a small business or a small company5 – refer to the FSCS for further information on this category
1 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded
2 Listed in Section C of Annex 1 of Directive 2014/65/EU
3 Under the Companies Act 1985 or Companies Act 2006
4 See footnote 3
Section B (from 1 January 2017)
pension or retirement fund6
6 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded
On 1 January 2016 the deposit protection limit is changing from £85,000 to £75,000.
If your bank, building society or credit union fails, the Financial Services Compensation Scheme (FSCS) protects your eligible deposits up to the deposit protection limit (currently £85,000 for most depositors).1
If you have eligible deposits of more than £75,000, you are unlikely to be fully protected after 1 January 2016 so you may need to take action if you wish to remain fully covered by the FSCS.
From 1 January 2016, your eligible deposits with [insert name of firm] will be protected up to a total of £75,000 by the FSCS. [The limit is applied to the total of your eligible deposits held with the following: insert names of brands as appropriate].
IF YOU HAVE MORE THAN £75,000 WITH [insert name of the account holding bank, building society or credit union and all other trading names of the same bank, building society or credit union]:
[Insert details of firm’s approach in respect of fixed term deposits. For example where firms choose to adopt measures that the PRA is consulting on in CP23/15 ahead of the PRA making final rules they should set this out here. Firms may also refer to the PRA’s consultation to manage the impact on depositors with aggregate deposit balances above £75,000.]
PLEASE CONTACT (insert firm contact details) FOR FURTHER INFORMATION ON KEEPING YOUR MONEY PROTECTED.
If you have total eligible deposits of less than £75,000 with [insert firm name], then you will not be affected by the limit change.
Further information regarding the protection provided by FSCS is set out below.
General limit of protection
Your eligible deposits held at the same bank, building society or credit union are added up in order to determine the coverage level. If, for instance, you hold eligible deposits in a savings account with £70,000 and a current account with £20,000, you will only be repaid £75,000 (or £85,000 for most depositors until 31 December 2015).
From 3 July 2015 until 31 December 2015:
The FSCS protects most depositors, including individuals and small companies, up to £85,000 until 31 December 2015.
Eligible deposits of large companies2 and small local authorities3 are eligible for FSCS protection from 3 July 2015 onwards. The £75,000 deposit protection limit will apply from 3 July 2015 since these deposits have not previously been protected.
From 1 January 2016:
From 1 January 2016, the FSCS will protect most eligible deposits up to a total of £75,000. Any deposits you hold above the limit are unlikely to be covered.
Depositors with aggregate deposit balances over £75,000
Further information will be provided to depositors on how these changes will affect depositors with aggregate balances over £75,000. Please contact ([insert firm details]) or the FSCS (details below) for further information.
In some cases, an eligible deposit which is categorised as “a “temporary high balance” (for example, as a result of a house sale, inheritance, or insurance payment) may be protected to a higher limit for six months after the amount has been credited to your account or from the moment when such eligible deposits become legally transferable. This applies from 3 July 2015. See the FSCS website for full details.
Exclusions from protection
• pension or retirement fund4
• public authority, other than a small local authority.
The following deposits, categories of deposits or other instruments are no longer protected from 3 July 2015:
• deposits of a credit union to which the credit union itself is entitled
• deposits which can only be proven by a financial instrument5 unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which exists in a Member State on 2 July 2014)
• deposits of a collective investment scheme which qualifies as a small company6
• deposits of an overseas financial services institution which qualifies as a small company7
• deposits of certain regulated firms (investment firms, insurance undertakings and reinsurance undertakings) which qualify as a small business or a small company8 – refer to the FSCS for further information on this category.
The FSCS aims to repay your eligible deposits (up to the compensation limit) within 7 days, and is required to do so within 20 working days (with some exceptions).
If you have any questions regarding the change in the compensation limit, please contact the Financial Services Compensation Scheme (FSCS) at:
Address: FSCS,
15 St Botolph Street,
Web: http://www.fscs.org.uk.
1 Exceptions for certain deposits are stated below and on the FSCS’s website: http://www.fscs.org.uk.
2 Large company means a body corporate which does not qualify as a small company under section 382 of the Companies Act 2006
3 Small local authority means a local authority with an annual budget of up to EUR 500,000
4 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded
5 Listed in Section C of Annex 1 of Directive 2014/65/EU
6 Under the Companies Act 1985 or Companies Act 2006
7 See footnote above
8 See footnote above
CP20/14- Depositor Protection
CP4/15- Depositor, Dormant Account and Policyholder Protection- amendments
CP15/15 - Depositor and dormant account protection – further amendments
CP21/15- Depositor and policyholder protection – technical amendments
CP23/15- Depositor and dormant account protection – consequential amendments
PS9/15: Depositor and dormant account protection – further amendments
PS14/15: Depositor and dormant account protection: the protection limit
PS15/15- Depositor and policyholder protection – technical amendments
Occasional Consultation Paper - CP41/15
Responses to Chapter 5 of CP41/15 – amendment to the definition of credit unions – PS23/16
Implementing risk-based levies for the Financial Services Compensation Scheme deposits class – CP7/16
Implementing risk-based levies for the Financial Services Compensation Scheme deposits class – PS25/16
Statement of Policy - Calculating risk-based levies for the Financial Services Compensation Scheme deposits class
Depositor and dormant account protection - SS18/15
Deposit protection limit – CP41/16
Deposit protection limit - Responses to CP41/16 - PS1/17