Citation and commencement

1.  These Regulations may be cited as the Deposit Guarantee Scheme (Amendment) Regulations 2015, and come into force at 1.00 p.m. on 3rd July 2015.

Amendment of the Deposit Guarantee Scheme Regulations

2.-(1) The Deposit Guarantee Scheme Regulations 2015(3) are amended as follows.

(2) In regulation 7 the existing text becomes paragraph (1).

(3) After that paragraph, insert-

"(2) Compensation scheme rules(4) made by the PRA in accordance with paragraph (1) are subject to regulation 7A."

(4) After regulation 7, insert-

"Transitional maximum compensation level

7A.-(1) For the period from 3rd July 2015 to 31st December 2015, the maximum compensation payable in accordance with PRA compensation scheme rules in respect of eligible deposits held by a relevant person with a compensation scheme member(5) is £85,000 (and no account shall be taken of any lower limit provided for in PRA compensation scheme rules), unless paragraph (2) applies.

(2) This paragraph applies if additional compensation is payable to a relevant person under PRA compensation scheme rules made to give effect to Article 6.2 of the deposit guarantee schemes directive(6).

(3) After 31st December 2015, the maximum compensation payable in respect of eligible deposits held by a relevant person with a compensation scheme member is the amount provided for by PRA compensation scheme rules.

(4) For the purposes of this regulation, a person is a "relevant person" if deposits held by that person-

(a)were, or would have been, eligible for compensation under the compensation scheme(7) before 3rd July 2015, and

(b)are eligible for compensation under the compensation scheme on 3rd July 2015 and after that date."

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations further implement Directive 2014/49/EU of the European Parliament and of the Council of 16th April 2014 on deposit guarantee schemes (recast) repealing Directive 94/19/EC (OJ 173 12.6.2014, p.149) (the "DGSD"), by amending the Deposit Guarantee Scheme Regulations 2015 (S.I. 2015/486) to provide for the maximum level of compensation available for deposits under the Financial Services Compensation Scheme ("FSCS") to remain at £85,000 for a transitional period of six months for those depositors who are entitled to that level of compensation under the FSCS now, and who will continue to be entitled to compensation under the FSCS once the DGSD is fully implemented on 3rd July 2015.

An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.