Depositor Compensation Scheme (Amendment) Regulations, 2017

L.N. 132 of 2017

BANKING ACT

(CAP. 371)

Depositor Compensation Scheme (Amendment) Regulations, 2017

IN exercise of the powers conferred by articles 3(1) and 28A of

the Banking Act, the Minister for Finance, on the advice of the Malta

Financial Services Authority, has made the following regulations

The title of these regulations is the Depositor

Compensation Scheme (Amendment) Regulations, 2017 and they

shall be read and construed as one with the Depositor Compensation

Scheme Regulations, hereinafter referred to as "the principal

regulations".

In regulation 4 of the principal regulations immediately

after sub-regulation (3), there shall be added the following new sub-

regulation

"(4) The establishment of the Depositor Compensation Scheme

pursuant to regulation 4 (1) shall not preclude the merger with a DGS

or DGSs of a different Member State or Member States or the

establishment of a cross-border DGS within the meaning of article 4

(1) of the Directive

Provided that the approval of such cross-border or merged

DGSs shall be obtained from the competent authority or the

Member States where the DGSs concerned are established.".

In regulation 10 of the principal regulations, immediately

after sub-regulation (3), there shall be added the following new sub-

regulation

"(4) Notwithstanding the provisions of sub-regulations (1) to

(3), the Scheme shall also, in accordance with the provisions of

article 26(3)(e) of the Arbiter for Financial Services Act, settle any

judgment or award of up to twenty thousand euro (€20,000), in

respect of any civil liability in regard to the business of banking,

which is obtained by a depositor against a member, which is, or has

been declared, in default, and such payment shall be made within ten

(10) working days from the day when the judgement or award

becomes res judicata

Provided that following the settlement of any such amount by

the Scheme, the maximum compensation sum payable for the

aggregate deposits of each depositor in terms of sub-regulation (2)

shall be reduced by the amount settled by the Scheme in accordance

with this sub-regulation.".

In sub-regulation (4) of

regulation 13 of the principal Amends

regulations, for the words "the amount referred to in this sub-regulation regulation

the principal

on the data provided by the member.", there shall be substituted the regulations.

words "the amount referred to in this sub-regulation, within five (5)

working days, on the data provided by the member.".

In sub-regulation (2) of regulation 35 of the principal Amends

regulations, for the words "shall compensate the Scheme for the costs regulation

the principal

incurred.", there shall be substituted the words "shall compensate the regulations.

Scheme for the costs incurred. The Scheme shall also inform the

depositors concerned on behalf of the DGS of the home Member State

and shall be entitled to receive correspondence from those depositors on

behalf of the DGS of the home Member State.".

The Schedule to the principal regulations entitled "Depositor Amendment of

the Schedule to

Information Sheet" shall be amended as follows

the principal

regulations.

(1)

In the second column of the second row thereof, for

the words "The Depositor Compensation Scheme, established

under regulation 3 of the Depositor Compensation Scheme

Regulations, 2015.", there shall be substituted the words, "The

Depositor Compensation Scheme, established under regulation 4

of the Depositor Compensation Scheme Regulations, 2015.".

(2)

In the second sub-paragraph of note 4 entitled

"Reimbursement" thereof, for the words "As of 31 May 2016,

where the Depositor Compensation Scheme cannot make the

repayable amount(s) available within seven (7) working days,

depositors shall have access to an amount, not exceeding one

thousand five hundred euro (€1,500), to cover the cost of living,

within five (5) working days of a request. The Depositor

Compensation Scheme shall only grant access to such amount

within five (5) working days on the basis of data provided by the

credit institution.", there shall be substituted the words "Until 31

December 2023, where the Depositor Compensation Scheme

cannot make the repayable amount(s) available within seven (7)

working days, depositors shall have access to an amount,

equivalent to three times the gross weekly minimum wage to cover

the cost of living, within five (5) working days of a request from

the depositor. The Depositor Compensation Scheme shall only

grant access to such amount within five (5) working days on the

basis of data provided by the credit institution. Such amount shall

be deducted from the compensation which may be payable.".

€0.27