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02 June 2015

BoE: Depositor and policyholder protection – technical amendments

This consultation paper (CP) sets out proposed changes to the Depositor Protection Part in the Prudential Regulation Authority (PRA) Rulebook and to the FEES transitional provisions and schedules in the PRA Handbook.

The rule amendments in this CP seek to confirm and clarify arrangements to support depositor preference and the power to ‘look through’ accounts to those absolutely entitled to deposits, as well as to address minor administrative changes.

The package of measures across the PRA’s consultations supports the orderly resolution of deposit-takers and the effective compensation or continuity of access to Financial Services Compensation Scheme (FSCS) covered deposits to depositors.

This CP proposes:

  • amendments to the recovery rules in the Depositor Protection Part to reflect depositor preference under Article 108 of the Banking Recovery and Resolution Directive. These rules allow the FSCS to pay over to the depositor recoveries it receives insofar as these exceed the amount that the depositor has been paid by the FSCS;
  • a new rule which sets out which person(s) the FSCS may treat as being absolutely entitled to an eligible deposit in circumstances where the account holder is not the person who is absolutely entitled to it;
  • an amendment to allow a firm to exclude from its class A tariff base calculation the value of any funds which it has confirmed are not covered deposits;
  • minor administrative amendments to Single Customer View (SCV) file and exclusions file requirements to clarify information to be included; and
  • an amendment to provide that, from 3 July 2015 until 1 June 2016, the FSCS shall ensure that a depositor that is a small local authority shall have access to their covered deposits within fifteen business days of receipt of a request from the depositor which contains sufficient information to enable the FSCS to make a payment.

Appendix 1 of this CP contains the proposed amendments to the Depositor Protection rules found in the Depositor Protection Part of the PRA Rulebook.

Appendix 2 of this CP contains an instrument covering FEES transitionals and schedules.  The PRA consulted on its approach to FEES transitional provisions and schedules (which relate to FEES 6, which sets out rules regarding the funding of the FSCS) in CP4/15. The instrument amending the relevant transitional provisions and schedules was not however included in the CP and is therefore included in this CP.

Appendix 3 of this CP contains proposed amendments to the Deposit Guarantee Scheme Statement of Policy to reflect changes proposed in this CP.

The consultation closes on Friday 19 June 2015.

Full information

Consultation paper

© Bank of England

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