The Credit Institutions (Protection of Depositors)Regulations 1995

Miscellaneous

Meaning of “deposit” in 1987 Act

45.—(1) In subsection (1) of section 5 of the 1987 Act (meaning of “deposit”), after the word “money” in the first place where it occurs, there shall be inserted the words “(whether denominated in a currency or in ecus)”.

(2) After that subsection there shall be inserted the following subsection—

“(1A) In subsection (1) above ‘ecu’ means—

(a)the European currency unit as defined in Article 1 of Council Regulation No. 3320/94/EC(1)

(b)any other unit of account which is defined by reference to the European currency unit as so defined.”

Information to be supplied on request

46.—(1) Each of the following, namely, a UK institution, a building society, an EEA institution and a non-EEA institution, shall secure that the information required by paragraph (4) below is supplied to any depositor or intending depositor who requests it—

(a)immediately in a case of a request made at a United Kingdom office of the institution; and

(b)as soon as practicable in any other case.

(2) In its application to UK institutions or building societies which accept deposits at offices in EEA States other than the United Kingdom, paragraph (1) above shall have effect as if the reference to a United Kingdom office included a reference to an office in such a State.

(3) Any information supplied in pursuance of paragraph (1) above shall be supplied in English except that, where the request is made at an office in an EEA State other than the United Kingdom, it shall be supplied instead in an official language of that State.

(4) The information required by this paragraph is as follows—

(a)in the case of a UK institution or building society—

(i)a summary of the provisions of the relevant UK scheme; and

(ii)where the institution or society participates in a relevant host State scheme, details of the level and scope of the supplementary protection afforded by that scheme;

(b)in the case of an EEA institution—

(i)a summary of the provisions of its home State scheme; and

(ii)where the institution participates in a UK scheme, details of the level and scope of the supplementary protection afforded by that scheme;

(c)in the case of a non-EEA institution which is participating in the deposit protection scheme, a summary of the provisions of that scheme;

(d)in the case of a non-EEA institution which is not so participating, a summary of the provisions of its home State scheme.

(5) Any reference in paragraph (4) above to a summary of the provisions of a scheme is a reference to a summary of those provisions which includes (but is not limited to) details of the level and scope of the protection afforded by the Scheme.

(6) Any reference in paragraph (4) above—

(a)to a summary of the provisions of a scheme; or

(b)to details of the level and scope of the supplementary protection afforded by a scheme,

includes a reference to a summary of any conditions that must be fulfilled, and any procedural steps that must be taken, before payments may be made in pursuance of the scheme.

(7) A host State scheme is a relevant host State scheme for the purposes of paragraph (4) above if the request is made at or is communicated to an office in the EEA State in which that scheme is in force.

(8) If the relevant authority is satisfied that it is necessary to do so—

(a)for the purpose of enabling a UK institution or building society which is participating in a host State scheme to comply both—

(i)with the provisions of this regulation; and

(ii)with the corresponding provisions of the law of the EEA State in which that scheme is in force; or

(b)for the purpose of enabling an EEA institution to comply both—

(i)with the provision of this regulation; and

(ii)with the corresponding provisions of the law of its home State,

the relevant authority may, on the application or with the consent of the institution or society, by order direct that any of the provisions of this regulation shall apply in relation to the institution or society with such modifications as may be specified in the order.

(9) In this regulation—

“the relevant authority”—

(a)in relation to a UK institution or EEA institution, means the Bank;

(b)in relation to a building society, means the Commission;

• “the relevant UK scheme”—

  (a)

  in relation to a UK institution, means the deposit protection scheme;

  (b)

  in relation to a building society, means the investor protection scheme.

(10) For the purposes of this regulation and regulations 47 and 48 below—

(a)any reference to an EEA institution’s home State scheme includes a reference to any alternative permitted system or arrangement for the protection of depositors which is in force in the institution’s home State and in which the institution participates;

(b)any reference to an EEA institution participating in a UK scheme is a reference to it doing so in accordance with Chapter I of Part II of these Regulations;

(c)any reference to a non-EEA institution participating in the deposit protection scheme is a reference to it not being one—

(i)which has, in accordance with Chapter III of Part II of these Regulations, elected not to participate in that scheme; and

(ii)whose election under that Chapter is still in force; and

(d)any reference to a non-EEA institution not so participating shall be construed accordingly.

Information in explanatory literature

47.—(1) Each of the following, namely, a UK institution, a building society, an EEA institution and a non-EEA institution, shall secure that either the information required by regulation 46(4) above or the information required by paragraphs (2) and (3) below is included in any explanatory literature which—

(a)relates to the making of deposits; and

(b)is supplied to depositors or intending depositors by the institution or society in the ordinary course of business.

(2) The information required by this paragraph is as follows—

(a)in the case of a UK institution or a building society, a statement to the effect—

(i)that most relevant deposits with the institution or society are protected by the relevant UK scheme; and

(ii)where the institution or society participates in a relevant host State scheme, that supplemental protection is afforded to such deposits by that scheme;

(b)in the case of an EEA institution, a statement to the effect—

(i)that most relevant deposits with the institution are protected by its home State scheme; and

(ii)where the institution participates in a UK scheme, that supplemental protection is afforded to such deposits by that scheme;

(c)in the case of a non-EEA institution which is participating in the deposit protection scheme, a statement to the effect that most relevant deposits with the institution are protected by that scheme;

(d)in the case of a non-EEA institution which is not participating in the deposit protection scheme, a statement to the effect that most relevant deposits with the institution are protected by its home State scheme.

(3) The information required by this paragraph is as follows—

(a)a statement as to the level of the protection afforded by the scheme or, as the case may be, each of the schemes as respects which a statement is required by paragraph (2) above; and

(b)a statement to the effect that additional information about that scheme or each of those schemes may, in accordance with regulation 46 above, be obtained by any depositor or intending depositor who requests it.

(4) A host State scheme is a relevant host State scheme for the purposes of paragraph (2) above if the explanatory literature is sent from an office in the EEA State in which that scheme is in force.

(5) Paragraph (8) of regulation 46 above applies for the purposes of this regulation as it applies for the purposes of that regulation.

(6) In this regulation—

“ecu” means—

(a)the European currency unit as defined in Article 1 of Council Regulation No. 3320/94/EC(2); or

(b)any other unit of account which is defined by reference to the European currency unit as so defined;

“EEA currency” means the currency of an EEA State or ecus;

“relevant deposit”, in relation to a UK institution, a building society, an EEA institution or a non-EEA institution, means a deposit in an EEA currency—

“the relevant UK scheme” has the same meaning as in regulation 46 above.

Information in advertisements

48.—(1) In this regulation “deposit advertisement” means any advertisement containing—

(a)an invitation to make a deposit; or

(b)information which is intended or might reasonably be presumed to be intended to lead directly or indirectly to the making of a deposit,

and for the purposes of this regulation an advertisement includes any means of bringing such an invitation or such information to the notice of the person or persons to whom it is addressed and any reference to the issue of an advertisement shall be construed accordingly.

(2) Subject to the provisions of this regulation, no deposit advertisement which is issued in the United Kingdom and relates to any of the following, namely, a UK institution, a building society, an EEA institution and a non-EEA institution, shall include any information about—

(a)the protection available to its depositors under the relevant UK scheme; or

(b)the protection so available under any host State scheme or home State scheme.

(3) A deposit advertisement may include—

(a)if it relates to a UK institution or a building society, a statement to the effect—

(i)that most relevant deposits with the institution or society are protected by the relevant UK scheme; and

(ii)where the institution or society participates in a host State scheme, that supplemental protection is afforded to such deposits by that scheme;

(b)if it relates to an EEA institution, a statement to the effect—

(i)that most relevant deposits with the institution are protected by its home State scheme; and

(ii)where the institution participates in a UK scheme, that supplemental protection is afforced to such deposits by that scheme;

(c)if it relates to a non-EEA institution which is participating in the deposit protection scheme, a statement to the effect that most relevant deposits with the institution are protected by that scheme;

(d)if it relates to a non-EEA institution which is not participating in the deposit protection scheme, a statement to the effect that most relevant deposits with the institution are protected by its home State scheme.

(4) A deposit advertisement which includes a statement authorised by paragraph (3) above may also include—

(a)a statement as to the level of the protection afforded by the scheme or, as the case may be, each of the schemes referred to in the statement so authorised; and

(b)a statement to the effect that additional information about that scheme or each of those schemes may, in accordance with regulation 46 above, be obtained by any depositor or intending depositor who requests it.

(5) Nothing in this regulation shall be taken to prohibit the inclusion, in any explanatory literature which relates to the making of deposits and is supplied to depositors or intending depositors in the ordinary course of business, of any information required by regulation 46(4) above.

(6) In this regulation—

“relevant deposit” has the same meaning as in regulation 47 above;

“the relevant UK scheme”—

(7) Subsections (6) and (7) of section 32 of the 1987 Act (advertisement regulations) shall apply for the purposes of this regulation as they apply for the purposes of that section; and in subsection (6) of that section as it so applies the reference to deposits shall be construed in accordance with regulation 2(2) above.