The Credit Institutions (Protection of Depositors)Regulations 1995

Chapter IIParticipation in EEA scheme by UK institution or building society

Duty of institution or society to notify withdrawal or exclusion

13.  Where a UK institution or building society withdraws or is excluded from a scheme for the protection of depositors which is in force in an EEA State other than the United Kingdom, it shall as soon as practicable take all such steps as may be necessary to bring the withdrawal or exclusion to the notice of depositors whose deposits were made with offices of the institution or society in that State.

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

14.—(1) Where a UK institution or building society which is participating in a host State scheme becomes insolvent (within the meaning of the relevant Part), the relevant enactment shall have effect as if—

(a)any reference to the relevant Board included a reference to the authority responsible for the host State scheme; and

(b)any reference to the making of a payment under any provision of the relevant Part included a reference to the making of a payment under that scheme.

(2) In this regulation “the relevant Board”, “the relevant enactment” and “the relevant Part” mean respectively—

(a)in relation to a UK institution, the Deposit Protection Board, section 62 of the 1987 Act and Part II of that Act;

(b)in relation to a building society, the Investor Protection Board, section 28 of the 1986 Act and Part IV of that Act.

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

Duty of Board to consult with host State authority

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

(a)consult with the authority having responsibility for that 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 or societies becoming insolvent (with 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 relevant UK scheme.

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

(a)consult with the authority having responsibility for that 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 relevant UK scheme.

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

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

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

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

Power of Board to make agency and information agreements

16.—(1) Where a UK institution or building society commences or resumes its participation in a host State scheme, the relevant Board may enter into an agency or information agreement with the authority responsible for that scheme.

(2) In this regulation—

“agency agreement” means an agreement between the relevant Board and the authority responsible for the host State scheme under which either one agrees, whether or not for a consideration, to make on the other’s behalf any payments falling to be made under the scheme for which the other is responsible;

“information agreement” means an agreement between the relevant Board and the authority responsible for the host State scheme under which either agrees, whether or not for a consideration, to disclose to the other any information in its possession which would or might assist the other to discharge its functions;

“the relevant Board” has the same meaning as in regulation 15 above.

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

17.—(1) Where a UK institution or building society which is or has been a participating institution has become insolvent, it shall be the duty of the relevant authority—

(a)to make a declaration that deposits held by the institution or society are no longer available; and

(b)to send a copy of the declaration to the authority responsible for each scheme which is or has been a host State scheme in relation to the institution or society.

(2) Where a UK institution or building society which is or has been a participating institution has ceased to be insolvent, it shall be the duty of the relevant authority—

(a)to withdraw the declaration made by it under paragraph (1) above; and

(b)to notify the withdrawal to each authority to which it has sent a copy of that declaration.

(3) In this regulation—

(a)references to a participating institution are references to an institution which is participating in a host State scheme; and

(b)references to becoming or ceasing to be insolvent shall be construed in accordance with the relevant enactment.

(4) In this regulation “the relevant authority” and “the relevant enactment” mean respectively—

(a)in relation to a UK institution, the Bank and section 59 of the 1987 Act;

(b)in relation to a building society, the Commission and section 25A of the 1986 Act.

Powers of authority responsible for host State scheme

18.—(1) Where a UK institution or building society which is participating in a host State scheme becomes insolvent (within the meaning of the relevant Part), the relevant enactments (which enable the relevant Board to obtain information) shall have effect as if—

(a)any reference to the relevant Board included a reference to the authority having responsibility for the host State scheme;

(b)any reference to the relevant Part included a reference to the corresponding provision of the law of the EEA State in which the host State scheme is in force; and

(c)any reference (however expressed) to a deposit protected by, or to a payment under, the relevant UK scheme included a reference to a deposit protected by, or to a payment under, the host State scheme.

(2) In this regulation “the relevant Board”, “the relevant enactments”, “the relevant Part” and “the relevant UK scheme” mean respectively—

(a)in relation to a UK institution, the Deposit Protection Board, section 58(8) and (9) and section 65(3) and (4) of the 1987 Act, Part II of that Act and the deposit protection scheme;

(b)in relation to a building society, the Investor Protection Board, section 29A(3) and (4) of the 1986 Act, Part IV of that Act and the investor protection scheme.

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

(4) Nothing in section 65(3) of the 1987 Act (as modified by this regulation), or section 29A(3) of the 1986 Act (as so modified), shall entitle an authority having responsibility for a host State scheme to require information to be provided or furnished, or documents, books or papers to be produced, at a place outside the United Kingdom.