BANKING Part I General Citation, commencement and extent 1 1 These Regulations may be cited as the Credit Institutions (Protection of Depositors) Regulations 1995. 2 These Regulations shall come into force on 1st July 1995. 3 These Regulations extend to Northern Ireland. Interpretation 2 1 In these Regulations— “the 1986 Act ” means the Building Societies Act 1986 ; “the 2000 Act” means the Financial Services and Markets Act 2000; ... ... ... ... “building society” means a building society incorporated (or deemed to be incorporated) under the 1986 Act; ... ... ... ... “EEA institution” means an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the 2000 Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; “ EEA State” means a State which is a Contracting Party of the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 ; “the FCA ” means the Financial Conduct Authority; “Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the 2000 Act; “Electing Participants Regulations” means the Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001; “home State”, in relation to an EEA institution ..., means the EEA State, or the country or territory, in which it is incorporated or under the law of which it is formed; “home State scheme” in relation to an EEA institution, means a scheme for the protection of depositors which is in force in the institution’s home State and in which the institution participates; “host State scheme”, in relation to a UK institution or building society, means a scheme for the protection of depositors which is in force in an EEA State other than the United Kingdom and in which the institution or society participates; “investment”, in relation to a building society or an Irish building society which, in accordance with the Electing Participants Regulations , is participating in the investor protection scheme, means a deposit with or a share in the society; ... ... “Irish building society” means an EEA institution which is incorporated in or formed under the law of the Republic of Ireland and whose characteristics correspond as nearly as may be to those of a building society; “the PRA ” means the Prudential Regulation Authority; “scheme manager” means a body corporate established in accordance with section 212(1) of the 2000 Act; ... “supervisory authority”, in relation to an EEA State other than the United Kingdom or a country or territory outside the European Economic Area, means an authority in that State, country or territory which has regulatory functions in relation to the acceptance of deposits; “UK institution” means a body corporate or partnership incorporated or formed under the law of any part of the United Kingdom, and which has permission under Part IV of the 2000 Act to accept deposits; ... 2 In these Regulations, unless the context otherwise requires, references to deposits include references to investments, and references to depositors or intending depositors shall be construed accordingly. Part II Participation in host State schemes Chapter I Participation in UK scheme by EEA institution Main provisions Eligibility to participate in scheme 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Participation in scheme 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Withdrawal from scheme 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exclusion where institution no longer eligible 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exclusion where institution in default 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeals against decisions of Board 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions Duty of institution to notify withdrawal or exclusion 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Board to consult with home State authority 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of Board to make agency and information agreements 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Board to maintain list of participating EEA institutions 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter II Participation in EEA scheme by UK institution or building society Duty of institution or society to notify withdrawal or exclusion 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of institution or society in respect of payments under host State scheme 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Board to consult with host State authority 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of Board to make agency and information agreements 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Bank or Commission to declare that deposits are no longer available 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers of authority responsible for host State scheme 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter III Non-participation in deposit protection scheme by non-EEA institution Main provisions Eligibility not to participate in scheme 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Election not to participate in scheme 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Election to cease to have effect where institution no longer eligible 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeals against decisions of Board 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions Duty of institution to notify election not to participate 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Board to maintain list of participating non-EEA institutions 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part III Amendments of Part II of 1987 Act Functions of Deposit Protection Board 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Deposit Protection Fund 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contributory institutions etc. 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Initial contributions 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculation of deposit base of transferee institutions 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compensation payments to depositors 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Meaning of insolvency etc. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Protected deposits 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trustee deposits, joint deposits etc. 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of institution in respect of compensation payments 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to obtain information 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part IV Amendments of Part IV of 1986 Act Function of Investor Protection Board 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Investor Protection Fund 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Meaning of insolvency etc. 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty to levy contributions etc. 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payments to investors 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of insolvent institution in respect of payments made by Board 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repayments in respect of contributions 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to obtain information 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trusts and joint or client account holdings 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part V Miscellaneous and supplemental Miscellaneous Meaning of “deposit” in 1987 Act 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information to be supplied on request 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information in explanatory literature 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information in advertisements 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplemental Enforcement: UK and non-EEA institutions 49 1 In subsection (1A) of section 11 of the 1987 Act (revocation of authorisation)— a in paragraph (e), after the words “the Banking Coordination (Second Council Directive) Regulations 1992” there shall be inserted the words “or the Credit Institutions (Protection of Depositors) Regulations 1995”; and b in paragraph (f), after the words “Second Council Directive” there shall be inserted the words “or Directive 94/19/ EC on deposit-guarantee schemes”. 2 In its application to a UK institution or building society, subsection (1) of section 55J (variation or cancellation on initiative of regulator) and subsection (2) of each of sections 55L and 55M of the 2000 Act (imposition of requirements) have effect as if— a at the end of paragraph (b), “or” were omitted; b at the end of paragraph (c) there were inserted— or d it is desirable to exercise the power in order to— i secure the payment by the institution or building society of unpaid contributions; or ii in the case of a UK institution, secure that the institution complies with any obligation imposed by or under the law of another EEA State in connection with its participation in a scheme for the protection of depositors or investors which is in force in that State. . 3 Where the FCA or the PRA — a is informed by the scheme manager of an unpaid contribution of a UK institution or building society ; or b is informed by a supervisory authority in another EEA State that a UK institution is failing to comply with such an obligation as is mentioned in paragraph (2)(b) above, that regulator shall, after such consultation with the scheme manager or supervisory authority as it considers appropriate, consider whether to exercise its powers under section section 55J, 55L or 55M of the 2000 Act . 4 In this regulation, “unpaid contribution”, in relation to an institution or building society, means any amount required to be paid by the institution or society by way of a levy imposed in accordance with the Financial Services Compensation Scheme, and which remains unpaid after the last day on which payment falls due, as determined by or in accordance with that Scheme. Enforcement: EEA institutions 50 1 In that paragraph (2)(c) of regulation 9 of the 1992 Regulations (power to prohibit the acceptance of deposits), for the words from “by these Regulations” to the end there shall be substituted— i by these Regulations or by or under any of the relevant Acts; or ii by the Credit Institutions (Protection of Depositors) Regulations 1995:. 2 In paragraph (2)(d) of that regulation for the words “the implementation of the second Council Directive” there shall be substituted— i the implementation of the Second Council Directive; or ii the implementation of Directive 94/19/EC on deposit-guarantee schemes;. Enforcement: building societies 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consequential amendments 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions and savings 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitory provisions 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Timothy Kirkhope Timothy Wood Two of the Lords Commissioners of Her Majesty’s Treasury 6th June 1995