The Credit Institutions (Protection of Depositors)Regulations 1995

Election to cease to have effect where institution no longer eligible

21.—(1) An election by a non-EEA institution not to participate in the deposit protection scheme (“the scheme”) shall cease to have effect if the deposit Protection Board (“the Board”) determines under this regulation that it is no longer eligible not to participate in the scheme.

(2) The Board shall not make a determination under this regulation unless, after consultation with such of the relevant authorities (if any) as it considers appropriate, it is satisfied that—

(a) the scope of the protection afforded to depositors by the instutition’s home State scheme; or

(b) the level of the protection so afforded,

is less than that afforded to depositors by the scheme.

(3) Written notice of a decision of the Board under paragraph (2) above, stating the reasons for it, shall be given to the institution.

(4) An election shall not cease to have effect by virtue of this regulation—

(a) until the time for appealing under regulation 22 below against the Board’s decision under paragraph (2) above has expired; or

(b) if an appeal is made under that regulation, unless and until that decision is confirmed by the Chancellor of the Exchequer.

(5) Where an election ceases to have effect by virtue of this regulation, the amount of the initial contribution levied on the institution under section 53 of the 1987 Act shall be reduced by the aggregate of—

(a) the amount of any previous initial contribution levied on the institution under that section; and

(b) so much of any further contribition levied on the institution under section 54 of that Act as was attributable to an order under subsection (2) of that section.