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- Point in Time (03/07/2015)
- Original (As made)
Version Superseded: 04/12/2018
Point in time view as at 03/07/2015.
There are currently no known outstanding effects for the The Deposit Guarantee Scheme Regulations 2015, PART 2.
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4.—(1) For the purposes of the deposit guarantee schemes directive the PRA M1 is the competent authority M2 and the designated authority M3.
(2) In exercising its functions under the deposit guarantee schemes directive as the competent authority and the designated authority the PRA must co-operate with EBA M4.
Marginal Citations
M1“PRA” is defined in section 417 of FSMA.
M2“competent authority” is defined in point (17) of Article 2(1) of the deposit guarantee schemes directive.
M3“designated authority” is defined in point (18) of Article 2(1) of the deposit guarantee schemes directive.
M4“EBA” is defined in section 417 of FSMA.
5. The PRA must notify the scheme manager M5 in writing as soon as reasonably practicable if the PRA becomes aware that a compensation scheme member has financial difficulties which are likely to require the intervention of the scheme manager under compensation scheme rules in respect of eligible deposits M6.
Marginal Citations
M5“scheme manager” is defined in section 212(1) of FSMA.
M6“eligible deposits” is defined in point (4) of Article 2(1) of the deposit guarantee schemes directive.
6.—(1) If the relevant administrative authority is satisfied that a compensation scheme member has failed to repay a deposit M7 which is due and payable, the relevant administrative authority must make the determination referred to in point (8)(a) of Article 2(1) of the deposit guarantee schemes directive.
(2) The determination must be notified in writing to—
(a)the compensation scheme member; and
(b)(i)the scheme manager, or
(ii)if the scheme manager is the relevant administrative authority, the PRA,
as soon as reasonably practicable and in any event before the end of the period of five working days beginning with the day on which the relevant administrative authority becomes satisfied that the compensation scheme member has failed to repay a deposit which is due and payable.
(3) For the purposes of this regulation the “relevant administrative authority”—
(a)is the scheme manager in relation to a compensation scheme member that is a credit union; and
(b)is the PRA in relation to any other compensation scheme member.
Marginal Citations
M7“deposit” is defined in point (3) of Article 2(1) of the deposit guarantee schemes directive.
7.— [F1(1)] The PRA must make compensation scheme rules which specify the maximum compensation payable in respect of eligible deposits held by a person with a compensation scheme member—
(a)in relation to categories of eligible deposit which fall within Article 6(2) of the deposit guarantee schemes directive; and
(b)in relation to all other categories of eligible deposit.
[F2(2) Compensation scheme rules made by the PRA in accordance with paragraph (1) are subject to regulation 7A.]
Textual Amendments
F1Reg. 7(1): reg. 7 renumbered as reg. 7(1) (3.7.2015) by The Deposit Guarantee Scheme (Amendment) Regulations 2015 (S.I. 2015/1456), regs. 1, 2(2)
F2Reg. 7(2) inserted (3.7.2015) by The Deposit Guarantee Scheme (Amendment) Regulations 2015 (S.I. 2015/1456), regs. 1, 2(3)
7A.—(1) For the period from 3rd July 2015 to 31st December 2015, the maximum compensation payable in accordance with PRA compensation scheme rules in respect of eligible deposits held by a relevant person with a compensation scheme member is £85,000 (and no account shall be taken of any lower limit provided for in PRA compensation scheme rules), unless paragraph (2) applies.
(2) This paragraph applies if additional compensation is payable to a relevant person under PRA compensation scheme rules made to give effect to Article 6.2 of the deposit guarantee schemes directive.
(3) After 31st December 2015, the maximum compensation payable in respect of eligible deposits held by a relevant person with a compensation scheme member is the amount provided for by PRA compensation scheme rules.
(4) For the purposes of this regulation, a person is a “relevant person” if deposits held by that person—
(a)were, or would have been, eligible for compensation under the compensation scheme before 3rd July 2015, and
(b)are eligible for compensation under the compensation scheme on 3rd July 2015 and after that date.]
Textual Amendments
F3Reg. 7A inserted (3.7.2015) by The Deposit Guarantee Scheme (Amendment) Regulations 2015 (S.I. 2015/1456), regs. 1, 2(4)
8. Before the available financial means M8 may be used for the purposes specified in Article 11(1) or 11(2) of the deposit guarantee schemes directive the PRA must—
(a)determine for the purposes of the third paragraph of Article 10(4) of the deposit guarantee schemes directive whether the scheme manager may raise contributions under the compensation scheme; and
(b)notify that determination in writing to the scheme manager and the Treasury.
Marginal Citations
M8“ available financial means” is defined in point (12) of Article 2(1) of the deposit guarantee schemes directive.
9. If the PRA makes compensation scheme rules in respect of eligible deposits limiting the levy payable by a compensation scheme member in respect of a period specified in those compensation scheme rules, the PRA may on receiving a request in writing from the scheme manager approve a levy on a person that exceeds that limit.
10.—(1) The scheme manager must make a payment of compensation to a person in accordance with the instructions of a non-UK deposit guarantee scheme if—
(a)that person has placed an eligible deposit with a credit institution M9 that is a member of that non-UK deposit guarantee scheme, through a branch M10 of that credit institution established in the United Kingdom;
(b)a payment of compensation is due to that person in respect of that deposit as a result of a determination or ruling referred to in paragraph (a) or (b) of point (8) of Article 2(1) of the deposit guarantee schemes directive; and
(c)the non-UK deposit guarantee scheme has—
(i)instructed the scheme manager to make that payment of compensation to that person; and
(ii)provided funds to the scheme manager to cover that payment of compensation.
(2) Anything done or omitted by the scheme manager in accordance with this regulation is to be treated for the purposes of section 222(1) of FSMA (statutory immunity) M11 as done or omitted in the discharge, or purported discharge, of the scheme manager's functions.
Marginal Citations
M9“credit institution” is defined in point (9) of Article 2(1) of the deposit guarantee schemes directive.
M10“branch” is defined in point (10) of Article 2.1 of the deposit guarantee schemes directive.
M11Section 222(1) was amended by the Banking Act 2009 (c.1), section 179(2) and the Financial Services Act 2012 (c. 21), section 38(1) and Schedule 10.
11.—(1) Each year before 31st March the PRA must notify EBA M12 of the following amounts calculated as at 31st December in the preceding year—
(a)the total amount of covered deposits M13 held by compensation scheme members; and
(b)the amount of the available financial means M14 of the compensation scheme.
Marginal Citations
M12“EBA” is defined in section 417 of FSMA.
M13“covered deposits” has the meaning given in point (5) of Article 2.1 of the deposit guarantee schemes directive.
M14“available financial means” has the meaning given in point (12) of Article 2.1 of the deposit guarantee schemes directive.
12. The PRA must notify EBA of the contents of any agreement which concerns the exercise of functions under the deposit guarantee schemes directive and is made between the scheme manager and a body which administers a non-UK deposit guarantee scheme (or, if different, the designated authority which supervises that non-UK deposit guarantee scheme).
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