Part I General

Citation, commencement and extent_I1

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_I2

2.—(1) In these Regulations—

“the 1986 Act” means the Building Societies Act 1986 ( 3 );

[^F1 “the 2000 Act” means the Financial Services and Markets Act 2000 ; ^F1]

^F2...

^F2...

^F3...

^F4...

“building society” means a building society incorporated (or deemed to be incorporated) under the 1986 Act;

^F2...

^F2...

^F2...

^F2...

[^F5 “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; ^F5]

“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( 4 ) as adjusted by the Protocol signed at Brussels on 17th March 1993( 5 );

[^F6 “the FCA ” means the Financial Conduct Authority; ^F6]

[^F7 “Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the 2000 Act; ^F7]

[^F7 “Electing Participants Regulations” means the Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001 ; ^F7]

^F8 “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;

[^F9 “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; ^F9]

“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 [^F10 the Electing Participants Regulations ^F10] , is participating in the investor protection scheme, means a deposit with or a share in the society;

^F2...

^F2...

“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;

[^F6 “the PRA ” means the Prudential Regulation Authority; ^F6]

[^F11 “scheme manager” means a body corporate established in accordance with section 212(1) of the 2000 Act; ^F11]

^F2...

“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;

[^F12 “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; ^F12]

^F2...

(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

^F133. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Participation in scheme

^F134. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Withdrawal from scheme

^F135. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion where institution no longer eligible

^F136. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion where institution in default

^F137. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals against decisions of Board

^F138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary provisions

Duty of institution to notify withdrawal or exclusion

^F139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of Board to consult with home State authority

^F1310. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power of Board to make agency and information agreements

^F1311. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of Board to maintain list of participating EEA institutions

^F1312. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter II Participation in EEA scheme by UK institution or building society

Duty of institution or society to notify withdrawal or exclusion

^F1313. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability of institution or society in respect of payments under host State scheme

^F1314. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of Board to consult with host State authority

^F1315. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power of Board to make agency and information agreements

^F1316. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of Bank or Commission to declare that deposits are no longer available

^F1317. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of authority responsible for host State scheme

^F1318. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter III Non-participation in deposit protection scheme by non-EEA institution

Main provisions

Eligibility not to participate in scheme

^F1319. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Election not to participate in scheme

^F1320. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Election to cease to have effect where institution no longer eligible

^F1321. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals against decisions of Board

^F1322. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary provisions

Duty of institution to notify election not to participate

^F1323. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of Board to maintain list of participating non-EEA institutions

^F1324. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III Amendments of Part II of 1987 Act

Functions of Deposit Protection Board

^F1325. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Deposit Protection Fund

^F1326. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contributory institutions etc.

^F1327. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Initial contributions

^F1328. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of deposit base of transferee institutions

^F1329. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation payments to depositors

^F1330. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of insolvency etc.

^F1331. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Protected deposits

^F1332. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trustee deposits, joint deposits etc.

^F1333. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability of institution in respect of compensation payments

^F1334. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to obtain information

^F1335. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV Amendments of Part IV of 1986 Act

Function of Investor Protection Board

^F1336. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Investor Protection Fund

^F1337. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of insolvency etc.

^F1338. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to levy contributions etc.

^F1339. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payments to investors

^F1340. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability of insolvent institution in respect of payments made by Board

^F1341. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayments in respect of contributions

^F1342. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to obtain information

^F1343. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trusts and joint or client account holdings

^F1344. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V Miscellaneous and supplemental

Miscellaneous

Meaning of “deposit” in 1987 Act

45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information to be supplied on request

^F1446. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information in explanatory literature

^F1447. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information in advertisements

^F1448. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental

Enforcement: UK and non-EEA institutions_I3

49.—(1) In subsection (1A)(6) 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”.

[^F15 (2) In its application to a _dfnUK 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.”.^F15]

(3) Where _dfnthe [^F16FCA or the PRA^F16] —

(a)is informed by [^F17the scheme manager^F17] of an unpaid contribution of a UK institution or [^F18building society^F18] ; 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,

[^F19 that regulator^F19] shall, after such consultation with [^F17the scheme manager^F17] or supervisory authority as it considers appropriate, consider whether to exercise its powers under section [^F20section 55J, 55L or 55M of the 2000 Act^F20] .

[^F21 (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. ^F21]

Enforcement: EEA institutions_I4

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

^F2251. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consequential amendments

^F2252. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional provisions and savings

^F2353. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitory provisions

^F2354. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .