European Union (Deposit Guarantee Schemes) Regulations 2015.

Statutory Instrument No.516/2015
Published date20 November 2015

CONTENTS

Regulation

Part 1

Preliminary and general

1. Citation and commencement

2. Scope

3. Interpretation

Part 2

Designated authority

4. Designated authority

5. Stress tests

6. Relevant administrative authorities

Part 3

Deposit guarantee scheme

7. Deposit guarantee scheme

8. Recognition of other schemes

9. Membership of deposit guarantee scheme

Part 4

Deposits

10. Eligibility of deposits

11. Coverage level of deposits

Part 5

Repayment

12. Determination of the repayable amount

13. Repayment

14. Claims against deposit guarantee schemes

15. Administration of payments

16. Powers of the designated authority

Part 6

Financing of deposit guarantee scheme

17. Establishment of Fund

18. Financing of Fund

19. Target level

20. Ex-ante contributions

21. Extraordinary ex-post contributions

22. Alternative funding means

23. Calculation of contributions to deposit guarantee scheme

24. Report to European Banking Authority

25. Use of funds

Part 7

Union cooperation

26. Cooperation within the Union

27. Cooperation agreements

Part 8

Third countries

28. Branches of credit institutions established in third countries

Part 9

Depositor information

29. Depositor information

30. List of authorised credit institutions

Part 10

Consequential amendments

Chapter 1

Acts

31. Amendment of Central Bank Act 1942

32. Amendment of Central Bank and Credit Institutions (Resolution) Act 2011

Chapter 2

Regulations

33. Amendment of European Union (Bank Recovery and Resolution) Regulations 2015

Part 11

Final provisions

34. Transitional provisions

35. Revocations

36. Laying of orders

SCHEDULE

Depositor Information Form

S.I. No. 516 of 2015

EUROPEAN UNION (DEPOSIT GUARANTEE SCHEMES) REGULATIONS 2015

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 20th November, 2015.

I, MICHAEL NOONAN, 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 full effect to Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes1 , hereby make the following regulations:

Part 1

Preliminary and general

Citation and commencement

1. (1) These Regulations may be cited as the European Union (Deposit Guarantee Schemes) Regulations 2015.

(2) These Regulations shall come into operation on 20 November 2015.

Scope

2. (1) These Regulations shall apply to the following:

(a) statutory deposit guarantee schemes;

(b) contractual deposit guarantee schemes that are officially recognised as deposit guarantee schemes in accordance with Regulation 8(1);

(c) institutional protection schemes that are officially recognised as deposit guarantee schemes in accordance with Regulation 8(2);

(d) credit institutions affiliated to the schemes referred to in subparagraph (a), (b) or (c).

(3) Without prejudice to Regulation 29(8), (9) and (12), the following schemes shall not be subject to these Regulations:

(a) contractual schemes that are not officially recognised as deposit guarantee schemes, including schemes that offer an additional protection to the coverage level laid down in Regulation 11(1);

(b) institutional protection schemes that are not officially recognised as deposit guarantee schemes.

Interpretation

3. (1) In these Regulations—

“Act of 1971” means the Central Bank Act 1971 (No. 24 of 1971);

“Act of 2010” means the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (No. 6 of 2010);

“authorised”, in relation to a credit institution, means—

(a) in the case of a bank, a bank authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 9 of the Act of 1971,

(b) in the case of a building society, a building society authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 17 of the Building Societies Act (No. 17 of 1989), or

(c) in the case of a credit union, a credit union registered within the meaning of the Credit Union Act 1997 (No. 15 of 1997) or deemed to be so registered by virtue of section 5(3) of that Act;

“available financial means” means cash, deposits and low-risk assets which can be liquidated within a period not exceeding that referred to in Regulation 13(1) and payment commitments up to the limit set out in Regulation 20(6);

“Bank” means the Central Bank of Ireland;

“Bank Recovery and Resolution Regulations” means the European Union (Bank Recovery and Resolution) Regulations ( S.I. No. 289 of 2015 );

“branch” means a place of business in the Member State concerned which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of credit institutions;

“competent authority” means, as the case may be—

(a) the authority designated under Regulation 4 of the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ), or

(b) the European Central Bank, with regard to specific tasks conferred on it by Council Regulation (EU) No 1024/2013 of 15 October 20132 ;

“Court” means the High Court;

“covered deposits” means the part of eligible deposits that does not exceed the coverage level laid down in Regulation 11;

“credit institution” means a credit institution as defined in point (1) of Article 4(1) of the Union Capital Requirements Regulation;

“decision date” means the date on which—

(a) the competent authority makes a determination mentioned in paragraph (a), or

(b) the Court makes a ruling mentioned in paragraph (b) or (c),

of the definition of “unavailable deposit”;

“deposit” means a credit balance which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution is required to repay, or may be required to repay at a future date, under the legal and contractual conditions applicable, including a fixed-term deposit or a savings deposit, but excluding a credit balance where—

(a) its existence can only be proven by a financial instrument (as defined in Article 4(17) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 20043 ) other than where it is a savings product which is evidenced by a certificate of deposit made out to a named person and which existed in the Member State concerned on 2 July 2014,

(b) its principal is not repayable at par, or

(c) its principal is only repayable at par under a particular guarantee or agreement provided by the credit institution or a third party;

“depositor” means the holder or, in the case of a joint account, each of the holders, of a deposit;

“deposit guarantee scheme” means a scheme referred to in Regulation 2(1)(a), (b) or (c);

“designated authority” means the authority designated under Regulation 4;

“eligible deposit” means a deposit that is not excluded from protection pursuant to Regulation 10;

“European Banking Authority” means the authority established pursuant to Regulation (EU) No 1093/2010;

“financial institution” means a financial institution as defined in point (26) of Article 4(1) of the Union Capital Requirements Regulation;

“Fund” means the fund established under Regulation 17(1);

“home Member State” means a home Member State as defined in point (43) of Article 4(1) of the Union Capital Requirements Regulation;

“host Member State” means a host Member State as defined in point (44) of Article 4(1) of the Union Capital Requirements Regulation;

“institutional protection scheme” means an institutional protection scheme referred to in Article 113(7) of the Union Capital Requirements Regulation;

“joint account” means an account—

(a) opened in the name of 2 or more persons, or

(b) over which 2 or more persons have rights that are exercised by means of the signature of one or more of those persons;

“low-risk assets” means items falling into the first or second category referred to in Table 1 of Article 336 of the Union Capital Requirements Regulation, cash or any assets which are considered to be similarly safe and liquid by the competent or designated authority;

“member state of the EEA” means a state that is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as amended for the time being;

“Minister” means the Minister for Finance;

“payment commitments” means payment commitments of a credit institution towards a deposit guarantee scheme which are fully collateralised providing that the collateral—

(a) consists of low-risk assets, and

(b) is unencumbered by any third-party rights and is at the disposal of the deposit guarantee scheme;

Regulation (EU) No 1093/2010” means Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC4 ;

“resolution authority” means the authority designated under Regulation 4(1) of the Bank Recovery and Resolution Regulations;

“target level” means the amount of available financial means which the deposit guarantee scheme is required to reach in accordance with Regulation 19 expressed as a percentage of covered deposits of its members;

“unavailable deposit” means a deposit that is due and payable but that has not been paid by a credit institution under the legal or contractual conditions applicable thereto, where either—

(a) the competent authority has determined that, for the time being, the credit institution concerned appears to be unable, for reasons which are directly related to its financial circumstances, to repay the deposit and has no current prospect of being able to do so,

(b) a court...

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