IE
S.I. No. 228/2009 - European Communities (Deposit Guarantee Schemes) (Amendment) Regulations 2009
Table of Provisions (31)
Statutory Text (31 Articles)
1. These Regulations may be cited as the European Communities (Deposit Guarantee Schemes) (Amendment) Regulations 2009.
Commencement
2. These Regulations come into operation on 30 June 2009.
Definition — “Principal Regulations”
3. In these Regulations “Principal Regulations” means the European Communities (Deposit Guarantee Schemes) Regulations 1995 (
S.I. No. 168 of 1995
).
Amendment of Regulation 3 of the Principal Regulations
3A. The Bank is the competent authority in the State for the purposes of the Directive.”.
Substitution of Regulation 4 of the Principal Regulations
4. For the purposes of section 2 of the Deposit Guarantee Act and Article 7(1) of the Directive, the amount of €100,000 is prescribed.”.
Substitution of Regulation 5 of the Principal Regulations
5. (1) For the purposes of section 4(1)(
a
) of the Deposit Guarantee Act, the amount of the deposit to be maintained by a credit institution (other than a credit union) in the deposit protection account is whichever is the greater of—
(
a
) €50,000, and
(
b
) 0.2% of the credit institution’s total deposits held in Member States.
(2) For the purposes of section 4(1)(
a
) of the Deposit Guarantee Act, the amount of the deposit to be maintained by a credit union in the deposit protection account is 0.2% of the credit union’s total deposits held in Member States.
(3) Paragraph (2) comes into operation on the day appointed by the Minister by order under section 12(2) of the Deposit Guarantee Act.
(4) For the purposes of paragraphs (1) and (2), a credit institution’s total deposits held in Member States include deposits on current accounts (whether denominated in euro or any other currency) but do not include—
(
a
) interbank deposits,
(
b
) negotiable certificates of deposits,
(
c
) debt securities issued by the institution,
(
d
) liabilities arising out of own acceptances, and
(
e
) promissory notes.”.
Amendment of Regulation 6 of the Principal Regulations
6. The Principal Regulations are amended by substituting for Regulation 4 the following
“Prescribed amount payable to person maintaining eligible deposit with credit institution
7. The Principal Regulations are amended by substituting for Regulation 5 the following
“Amount of deposit to be maintained by credit institution in deposit protection account
8. If an authorised or formerly authorised credit institution ceases to carry on business, but no compensation event has occurred in relation to the credit institution, the Bank may retain the full amount, or such lesser amount as the Bank considers appropriate, of the credit institution’s deposit in the deposit protection account until it is satisfied that all liability of the credit institution in respect of every person maintaining an eligible deposit with it has been or will be discharged.
Compensation events
8A. (1) For the purposes of these Regulations, a compensation event has occurred in relation to a credit institution if—
(
a
) the Bank has determined that, for the time being, the credit institution appears to be unable, for reasons directly related to its financial circumstances, to repay a deposit or deposits and to have no current prospect of being able to do so,
(
b
) a court has appointed a liquidator or examiner of the credit institution, or
(
c
) a judicial authority has made, for reasons directly related to the credit institution’s financial circumstances, any other ruling that has the effect of suspending depositors’ ability to make claims against it.
(2) If the Bank becomes satisfied that a credit institution has failed to repay a deposit that is due and payable, the Bank shall make a determination referred to in paragraph (1)(
a
) as soon as possible, and not longer than 5 working days, after first so becoming satisfied.
Obligation to make certain payments in the event of compensation events
9. (1) After the occurrence of a compensation event in relation to a credit institution, the Bank shall pay or cause to be paid to each person maintaining an eligible deposit with the credit institution an amount calculated in accordance with Regulation 10(1).
(2) A payment to a person pursuant to paragraph (1) is called in these Regulations a ‘guarantee payment’.
(3) A guarantee payment shall be charged on the deposit protection account.
(4) The Bank shall take all reasonable steps to ensure that guarantee payments are paid as expeditiously and with the least expense to the Bank as is possible consistent with these Regulations.
Period for payment from deposit protection account—compensation events occurring on or before 30 December 2010
9A. (1) This Regulation has effect where a compensation event occurs in relation to a credit institution on or before 30 December 2010.
(2) Subject to paragraph (3), the Bank shall be in a position to make guarantee payments in response to duly verified claims by depositors in respect of eligible deposits with the credit institution concerned within 3 months of the date on which the relevant compensation event occurs.
(3) In wholly exceptional circumstances and in special cases the Bank may provide for up to three extensions of the time limit in paragraph (2), each of which extensions shall not exceed three months.
Period for payment from deposit protection account—compensation events occurring on or after 31 December 2010
9B. (1) This Regulation has effect where a compensation event occurs in relation to a credit institution on or after 31 December 2010.
(2) Subject to paragraph (3), the Bank shall be in a position to make guarantee payments in response to duly verified claims by depositors in respect of eligible deposits with the credit institution concerned within 20 working days of the date on which the relevant compensation event occurs.
(3) In wholly exceptional circumstances the Bank may extend the time limit in paragraph (2) by no longer than 10 working days.
Time limits not to be invoked to deny claim
9C. The Bank shall not invoke a time limit under Regulation 9A or 9B to refuse a guarantee payment to a person maintaining eligible deposits who has not been able to assert a claim to payment in time.
Claim by person charged with money-laundering offence
9D. Despite Regulations 9A or 9B (as the case requires), if a person entitled to or with an interest in a sum held in an account has been charged with a money-laundering offence, the Bank may suspend any guarantee payment pending the verdict of the court concerned in respect of the charge or charges.
Amount payable in the event of a compensation event
10. (1) The amount of the guarantee payment payable to a person maintaining eligible deposits with a credit institution is the total amount of the person’s eligible deposits with the credit institution concerned or €100,000 or its equivalent, whichever is the less.
(2) A person maintaining eligible deposits with a credit institution in relation to which a compensation event has occurred may, subject to Regulation 14, claim as an ordinary creditor of the credit institution in respect of so much of those deposits as is in excess of any guarantee payment to the person.
Procedure for payment pursuant to Regulation 9
11. Regulation 14 of the Principal Regulations is amended by substituting for paragraph (1) the following
“(1) Where the Bank has made guarantee payments to persons maintaining eligible deposits with a credit institution—
(
a
) the Court (or, in the case of a voluntary winding-up of the credit institution, the liquidator) shall admit the amount of each such payment as a proved debt due to the Bank, and
(
b
) in relation to each such debt—
(i) the Bank shall have the same priority as the person to whom the relevant guarantee payment was paid would have if that payment had not been made, and
(ii) the Bank shall rank ahead of the person for the full amount of the debt.”.
Substitution of Regulation 16 of the Principal Regulations
12. The Principal Regulations are amended by substituting for Regulation 16 the following
“Eligible deposits
13. Regulation 17 of the Principal Regulations is amended—
(
a
) by substituting for paragraph (1) the following—
“(1) Where the Bank is of the opinion that—
(
a
) a person is an excluded depositor by virtue of—
(i) being a connected person to whom paragraph (
c
) or (
d
) of the definition of “excluded depositor” in Regulation 3 applies, or
(ii) being a trustee of a trust for the benefit of a connected person to whom paragraph (
e
) of that definition applies, or
(
b
) a person is a person to whom Regulation 16(1)(
h
) applies,
then, subject to paragraph (2)(
b
), the Bank shall notify the person in writing of that opinion and the reasons for it, and the steps that the person may take under paragraph (2).”, and
(
b
) in paragraph (4)(
b
) by substituting “this paragraph” for “this subsection”.
Amendment of Regulation 18 of the Principal Regulations
14. Regulation 18 of the Principal Regulations is amended—
(
a
) in paragraph (1)(
a
) by substituting “an authorised or formerly authorised credit institution” for “the credit institution authorised or formerly authorised by the Bank”,
(
b
) in paragraph (1) by substituting “only for the purpose of calculating the amount of the beneficiary’s or beneficiaries’ eligible deposits (if any)—” for “only for the purpose of ascertaining an appropriate calculation—”,
(
c
) in paragraph (2)—
(i) by substituting “an authorised or formerly authorised credit institution” for “the credit institution authorised or formerly authorised by the Bank”, and
(ii) by substituting “only for the purpose of calculating the amount of the persons’ eligible deposits (if any),” for “but only for the purpose of ascertaining an appropriate calculation,”,
(
d
) in paragraph (4) by substituting “calculating the amount of a person’s eligible deposits (if any),” for “ascertaining an appropriate calculation,”,
(
e
) in paragraph (5) by substituting “calculating the amount of the person’s eligible deposits (if any),” for “ascertaining an appropriate calculation,”
(
f
) by deleting paragraph (6).
Amendment of Regulation 19 of the Principal Regulations
15. Regulation 19 of the Principal Regulations is amended—
(
a
) by substituting for paragraph (1) the following—
“(1) Whether or not the Bank has made payments under these Regulations, the Bank may, at its discretion and to such extent as it thinks proper from time to time for the purposes of maintaining the stability of the financial system, charge on the deposit protection account any other payment by the Bank out of the general fund that, in the opinion of the Bank, was applied on a short-term and urgent basis—
(
a
) to protect the interest of persons or any class of persons maintaining deposits with one or more credit institutions authorised or formerly authorised by the Bank, or
(
b
) to promote the orderly and proper regulation of banking.”,
and
(
b
) in paragraph (2) by substituting “authorised credit institution” for each occurrence of “credit institution authorised by the Bank”.
Amendment of Regulation 20 of the Principal Regulations
16. Regulation 20 of the Principal Regulations is amended—
(
a
) in paragraph (1)—
(i) by substituting “authorised credit institutions” for “credit institutions authorised by the Bank”, and
(ii) by deleting “in accordance with Regulation 12 or Regulation 13 or Regulation 19”,
(
b
) in paragraph (2)(
a
) by substituting “section 5(1) of the Deposit Guarantee Act” for “Regulation 5”, and
(
c
) in paragraph (3) by substituting “authorised credit institution” for “credit institution authorised by the Bank”.
Amendment of Regulation 22 of the Principal Regulations
16A. (1) For the purposes of these Regulations, the total amount of a depositor’s eligible deposits with a credit institution includes any interest or other premium accrued on the deposits up to and including the day of the relevant compensation event.
(2) In calculating the total amount of a depositor’s eligible deposits where the authorisation of the credit institution concerned has been revoked, no account shall be taken of a debt for any sum deposited by a person with the credit institution after the revocation if the Bank is satisfied that, at the time the deposit was made, the person knew or could be reasonably be expected to have known that the authorisation had been revoked.”.
Amendment of Regulation 17 of the Principal Regulations
17. Regulation 22 of the Principal Regulations is amended—
(
a
) in paragraph (1)—
(i) by substituting “section 4 of the Deposit Guarantee Act” for “Regulation 5”,
(ii) by substituting for subparagraph (
b
) the following
“(
b
) as repayment of the principal of, or the payment of any interest on, any funds provided by the Bank pursuant to these Regulations, or”,
and
(
b
) in paragraph (3)(
b
) by substituting “this paragraph” for “this subsection”.
Amendment of Regulation 23 of the Principal Regulations
18. Regulation 23 of the Principal Regulations is amended—
(
a
) in paragraph (1) by substituting “of a credit institution” for “by virtue of Regulation 10”, and
(
b
) in paragraph (2) by deleting “under Regulation 10”.
Revocation of Regulation 24 of the Principal Regulations
19. Regulation 24 of the Principal Regulations is revoked.
Amendment of Regulation 25 of the Principal Regulations
20. Regulation 25 of the Principal Regulations is amended—
(
a
) in paragraph (1) by substituting “an authorised credit institution” for “a credit institution authorised by the Bank”,
(
b
) in paragraph (3) by substituting “An authorised credit institution” for “A credit institution authorised by the Bank”, and
(
c
) by substituting for paragraph (4) the following
“(4) The Bank and any liquidator of a credit institution to which this Regulation applies are bound by Article 4 of the Directive and by the Guiding Principles laid down in Annex II to the Directive.”.
Amendment of Regulation 26 of the Principal Regulations
21. Regulation 26 of the Principal Regulations is amended—
(
a
) in paragraph (2) by substituting “an authorised credit institution” for “a credit institution authorised by the Bank”, and
(
b
) by substituting for paragraph (4) the following
“(4) Where a compensation event occurs in relation to a credit institution maintaining a deposit in the deposit protection account under this Regulation, the Bank shall make arrangements for payments to be made in accordance with the Directive and the Guiding Principles in Annex II to the Directive. The payments shall be charged on the deposit protection account in the general fund.”.
Amendment of Regulation 27 of the Principal Regulations
22. Regulation 27 of the Principal Regulations is amended—
(
a
) by substituting for paragraph (1) the following
“(1) A person who contravenes Regulation 6(3) commits an offence and is liable—
(
a
) on summary conviction to a fine not exceeding €5,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or
(
b
) on conviction on indictment to a fine not exceeding €250,000 or, at the discretion of the court, to imprisonment for a term not exceeding 3 years, or to both.”,
and
(
b
) by deleting paragraph (2).
Revocation of Regulation 28 of the Principal Regulations
23. Regulation 28 of the Principal Regulations is revoked.
GIVEN under my Official Seal,
24 June 2009
BRIAN LENIHAN.
Minister for Finance.
EXPLANATORY NOTE
(This note is not part of the Instrument and does not purport to be a legal interpretation.)
These regulations update the European Communities (Deposit Guarantee Schemes) Regulations 1995 (
SI No. 168 of 1995
) in line with the Government announcement of 20 September 2008 and also transpose Directive 2009/14/EC of the European Parliament and of the Council of 11 March 2009. They also make various other changes, mainly of a technical nature, to update the 1995 scheme.
Changes made include increasing the statutory limit for the scheme from €20,000 to €100,000 per eligible depositor per institution; discontinuing the 10% co-insurance requirement; extending the cover of the scheme to credit union savers; reducing the minimum payout period under the scheme; increasing the minimum contribution requirement by credit institutions to €50,000 (but this does not apply to credit unions) and ending the set-off requirement when making payouts under the scheme.
1 OJ No. L135, 31.5.1994, p.5
2 OJ L309, 25.11.2005, pp. 15–36.
S.I. No. 228 of 2009
EUROPEAN COMMUNITIES (DEPOSIT GUARANTEE SCHEMES) (AMENDMENT) REGULATIONS 2009
ARRANGEMENT OF REGULATIONS