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COMP 16.2 Informing depositors of limitations to coverage

COMP 16.2.1

[Note: article 9(1) of the Deposit Guarantee Directive]

COMP 16.3 1UK domestic firms, non-EEA firms and incoming EEA firms

Incoming EEA firms that accept deposits through UK branches and have obtained top-up cover

COMP 16.3.4 R

An incoming EEA firm that accepts deposits through a UKbranch and has obtained top-up cover must disclose the following information to any protected deposit holder with that firm who is or is likely to be an eligible claimant.

"Important information about compensation arrangements

We are part of [insert name of firm] which is based in [insert name of Home State]. Most depositors are covered by [insert name of Home State compensation scheme] compensation scheme which is also based in [insert name of Home State]. In addition, for depositors with our UK branch we have joined the UK compensation scheme, the Financial Services Compensation Scheme (FSCS).

This means that if our bank is unable to meet its financial obligations, eligible depositors with our UK branch could claim up to £ [insert Home State compensation scheme maximum payment for deposits]3 from the [insert name of Home State compensation scheme] and if they have more saved with us, they could also claim for the remainder up to [insert FSCS maximum payment for protected deposits] from the FSCS.

This is because the [insert name of Home State compensation scheme] is only responsible for paying the first part of the compensation up to £ [insert Home State compensation scheme maximum payment for deposits]3 and the FSCS is only responsible for paying the second part of compensation - being above £ [insert Home State compensation scheme maximum payment for deposits]3 and up to [insert FSCS maximum payment for protected deposits].

The FSCS will also try to help depositors with our UK branch, for example, to get in touch with the [insert name of Home State compensation scheme] compensation scheme and to understand the process involved.

For further information on how compensation would apply to you please contact:

  • [insert name of firm] by dropping into one of our branches, at [insert website link] or by calling [insert phone number].

General information is also available from:

  • the FSCS by calling [insert FSCS phone number] or at www.fscs.org.uk/.
  • [insert name of Home State compensation scheme] compensation scheme by contacting [insert relevant phone number and website link].