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The Credit Institutions (Protection of Depositors)Regulations 1995

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Duty of Board to consult with home State authority

10.—(1) As soon as practicable after an EEA institution commences or resumes its participation in a UK scheme, the relevant Board shall, if it has not already done so in connection with another such institution’s participation in the UK scheme—

(a)consult with the authority having responsibility for the institution’s home State scheme; and

(b)come to an agreement with that authority as to the rules and procedures to be adopted for determining, in the event of such institutions becoming insolvent (within the meaning of the relevant Part), the respective amounts of compensation which, after any deductions by way of set-off, would be payable under that scheme and the UK scheme.

(2) As soon as practicable after an EEA institution which is participating in a UK scheme becomes insolvent (within the meaning of the relevant Part), the relevant Board shall—

(a)consult with the authority having responsibility for the institution’s home State scheme; and

(b)come to an agreement with that authority as to the respective amounts of compensation which, after any deductions by way of set-off, are payable under that scheme and the UK scheme.

(3) In this regulation “the relevant Board” and “the relevant Part” mean respectively—

(a)in relation to the deposit protection scheme, the Deposit Protection Board and Part II of the 1987 Act;

(b)in relation to the investor protection scheme, the Investor Protection Board and Part IV of the 1986 Act.

(4) Any reference in this regulation to an EEA institution includes a reference to an institution which was formerly an EEA institution and continues to have a liability in respect of any deposit for which it had a liability at a time when it was an EEA institution.

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