European Communities (Deposit Guarantee Schemes) Regulations, 1995

• Jurisdiction: Ireland

S.I. No. 168 of 1995.

EUROPEAN COMMUNITIES (DEPOSIT GUARANTEE SCHEMES) REGULATIONS, 1995.

I, RUAIRÍ QUINN, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 , (No. 27 of 1972), and for the purpose of giving effect to Council Directive 94/19/EC of 1994(1), hereby make the following regulations: 1. (1) These Regulations may be cited as the European Communities (Deposit Guarantee Schemes) Regulations, 1995.

(2) These Regulations shall come into operation on the 1st day of July, 1995. 2. (1) In Part II of the Central Bank Act, 1989 , Chapter V is hereby repealed.

(2) Part IX of the Building Societies Act, 1989 , is hereby repealed.

(3) In Part II of the Central Bank Act, 1971 , Section 7 (1) is hereby amended by the deletion of paragraph (b).

(4) The European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 are amended by the deletion of:

( a ) the words "53 and 55, sections 57 to 60, sections 62 and 63, sections 65 to 71 and sections 73" in Regulation 38, paragraph (1), subparagraph (a), sub-subparagraph (ii);

( b ) paragraphs (2) and (3) in Regulation 38.

(1)O.J. No. L135, 31.5.94, p.5. 3. (1) In these Regulations

"accounts" means the balance sheet, profit and loss account and any notes on the accounts or statements forming part of the accounts whether or not required by law:

"authorisation", in relation to a credit institution, means an authorisation by the Bank to carry on the business of a credit institution in accordance with the provisions of any of the supervisory enactments, and references to authorised, in relation to such an institution, shall be construed accordingly;

"the Bank" means the Central Bank of Ireland;

"branch" means a place of business which forms a legally dependent part of a credit institution and which conducts directly all or some of the operations inherent in the business of credit institutions and any number of branches set up in the same Member State by a credit institution which has its head office in another Member State shall be regarded as a single branch;

"building society", for the purposes for these regulations, means a building society authorised or deemed to be authorised under the Building Societies Act, 1989 , or a building society authorised under the Building Societies Act, 1986 of the United Kingdom of Great Britain and Northern Ireland;

"child" includes a person of full age;

"Community" means the European Community, including members of the European Economic Area;

"connected person" in relation to another person, means a person maintaining deposits (including deposits, if any, on current accounts) with a credit institution authorised or formerly authorised by the Bank which has been the subject of a determination by the Bank or a ruling by the court in accordance with Regulation 9 and where the person is—

( a ) the spouse of that other person,

( b ) the child or grandchild of that other person or the child or grandchild of the spouse of that other person,

( c ) the parent or grandparent of that other person,

( d ) the brother, sister, stepbrother or stepsister of that other person,

( e ) a partner of that other person to whom, together, the Partnership Act, 1890, applies (whether or not with any other persons),

( f ) the spouse of a connected person to whom paragraph (b), (d) or (e) applies in relation to the appropriate other person to whom the relevant paragraph relates.

"the competent authority"—

( a ) in relation to the State, means the Bank, and

( b ) in relation to any other Member State, means a body or bodies charged with the supervision of credit institutions;

"the Court" means the High Court;

"credit institution" means an undertaking, other than a credit union or friendly society, whose business it is to receive deposits or other repayable funds from the public and to grant credit on its own account;

"credit union" means a society which is registered as a credit union under the Industrial and Provident Societies Acts, 1893 to 1978, by virtue of the Credit Union Act, 1966 ;

"deposit" means, for the purposes of these Regulations, any credit balance with a credit institution which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution must repay under the legal and contractual conditions applicable, and any debt evidenced by a certificate issued by a credit institution, and includes share accounts with building societies (other than shares which fall within the definition of "own funds" in Article 2 of Council Directive No. 89/299/EEC of 17 April 1989);

"deposit protection account" means the account established by virtue of section 54 of the Central Bank Act, 1989 and maintained by virtue of Regulation 4 of these Regulations;

"the Directive" means Council Directive No. 94/19/EC of 30 May 1994 on deposit-guarantee schemes;

"ECU" means the European Currency Unit;

"eligible deposits" has the meaning assigned to it by regulation 16;

"excluded depositor" means a person maintaining deposits (including deposits, if any, on current accounts) with a credit institution authorised or formerly authorised by the Bank which has been the subject of a determination by the Bank or a ruling by the Court in accordance with Regulation 9 and, in relation to that credit institution is—

( a ) a chief officer, secretary or member of any board or other committee of management, by whatever name called,

( b ) a relevant beneficial owner of that credit institution,

( c ) together with connected persons, a relevant beneficial owner of that credit institution,

( d ) subject to Regulation 17, a connected person to a person specified in paragraph (a), (b) or (c),

( e ) subject to Regulation 17, a trustee of a trust for the benefit of a person specified in paragraph (a), (b), (c) or (d),

( f ) (i) where the credit institution is a building society, a subsidiary of the society or a body corporate (not being a subsidiary of the society) in respect of which the society is the relevant beneficial owner;

(ii) in circumstances other than those specified in subparagraph (i), a holding company, a subsidiary company, another subsidiary company of the same holding company or a company (not being a subsidiary company) in respect of which the credit institution is a relevant beneficial owner;

"financial institutions" means financial institutions as defined in Regulation 2 of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 ( S.I. No. 395 of 1992 );

"home Member State" in relation to an undertaking incorporated in or formed under the law of another Member State, means that Member State;

"interbank deposits" means deposits with a credit institution by other credit institutions on their own behalf and on their own account;

"joint account" means an account opened in the names of two or more persons or over which two or more persons have rights that may operate against the signature of one or more persons;

"own funds" means all instruments which would fall within the definition of 'own funds' in Article 2 of Council Directive 89/299/EEC of 17 April 1989 on the own funds of credit institutions;

"relevant beneficial owner", in relation to a body corporate, means a person who is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in the body corporate, except where such shares are to be considered as deposits for the purposes of these Regulations;

"supervisory enactments" means the Central Bank Acts, 1942 to 1989, the Building Societies Act, 1989 (No. 17 of 1989), the Trustee Savings Banks Act, 1989 (No. 21 of 1989), the ACC Bank Act, 1992 (No. 6 of 1992), the ICC Bank Act, 1992 (No. 21 of 1992), or any other enactment relating to supervision by the Bank and for the time being in force;

"unavailable deposit" has the meaning assigned to it by Regulation 9;

"undertaking" has the same meaning as it has in Regulation 3 of the European Communities (Companies: Group Accounts) Regulations, 1992 ( S.I. No. 201 of 1992 ).

(2) A word or expression that is used in these Regulations and is also used in the Directive has, unless the contrary is indicated, the same meaning in these Regulations as it has in the Directive.

(3) In these regulations, unless the context otherwise requires, a reference to a regulation is to a regulation of these Regulations, and a reference to a paragraph is to the paragraph of the Regulation in which the reference occurs. 4. (1) The account established and maintained by the Bank immediately before the coming into operation of these Regulations by virtue of section 54 of the Central Bank Act, 1989 shall continue to be maintained by the Bank and shall continue to be known as the deposit protection account.

(2) The deposit standing maintained with the Bank immediately before the coming into operation of these Regulations by each holder of a licence in accordance with Chapter V of the Central Bank Act, 1989 or building society in accordance with Part IX of the Building Societies Act, 1989 shall be maintained in the deposit protection account in respect of that holder or society and the said account shall continue to operate in relation to holders of licences and building societies in common. 5. (1) A credit institution authorised by the Bank shall not carry on the business of a credit institution unless it maintains on deposit with the bank an amount determined in accordance with this Regulation.

(2) The amount of a deposit maintained by a credit institution authorised by the Bank under these Regulations shall, subject to paragraph (5), be 0.2 per cent. of total deposits...