Europe: Commission proposals for the European Deposit Insurance Scheme

The European Commission has published its proposals - in the form of a Regulation - for a European Deposit Insurance Scheme. A copy of the proposed Regulation is available here (pdf). For further information see: FAQs| Press release| Press conference video recording|.

UK: PRA announces deposit protection changes

Changes to the depositor and policyholder protection provided by the Financial Services Compensation Scheme (FSCS) were announced today by the Prudential Regulation Authority: see here. The changes are being made by the Deposit Guarantee Scheme (Amendment) Regulations 2015 and their effect is to maintain, for the majority of depositors currently covered by the FSCS, the existing level of deposit protection (£85,000) until the end of the year (after which the amount becomes £75,000). Other changes also come into effect today, including protection in respect of temporarily high balances (e.g., where money is received following a house sale, or funds received from an inheritance or divorce).

UK: Bank of England consultations (including the governance of ring-fenced bodies)

The Bank of England has today published several consultation papers that set out proposed changes designed to improve the resilience and resolvability of deposit-takers and reduce the disruption to customers and the system if a deposit-taker or insurer fails: see here. A consultation paper has also been published in respect of the implementation of bank ring-fencing and this focuses on legal structure, governance and the continuity of services and facilities: see here (pdf). The governance part of this paper considers, amongst other things, the proposed requirements for the composition and structure of the board of ring-fenced bodies.

EFTA Court finds no breach by Iceland under deposit guarantee Directive

The EFTA Court delivered its opinion today in EFTA Surveillance Authority v Iceland (Case E-16/11): see here (pdf). The court held that Iceland did not breach its obligations under Directive 94/19/EC on deposit-guarantee schemes (as it then stood) when it failed to ensure the payment of compensation to depositors in the UK and the Netherlands within the required time limits following the collapse of Icesave. A press summary of the decision is available here (pdf).