Return of Eligible Deposits
As a result of amendments effected by the Deposit Guarantee Scheme (Amendment) Act 2009 reflecting the increased amounts payable to eligible depositors, the return of potential compensation has been amended.
Format of return
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Pooled Accounts
In relation to pooled account, please note that figures on the survey of potential compensation should reflect the number of eligible depositors as well as the level of compensation. If a scheme participant is unable to determine the number of eligible depositors that make up the balance of a pooled account, the balance of the pooled account in its entirety should be considered eligible and should be reflected in the figures reported in the survey of potential compensation.
Participants should note that only accounts denominated in EEA currencies are required to be accounted for.
Account balances of non-qualifying deposits must also be excluded from the return. In summary, these are:
- Amounts deposited by another bank for its own account.
- Deposits which form part of the capital of the bank.
- Deposits arising out of transactions in connection with which there has been a conviction under anti money-laundering legislation.
- Deposits by financial institutions.
- Deposits by insurance undertakings.
- Deposits by governments, central administrative authorities or local or regional governments or authorities.
- Deposits by collective investment undertakings.
- Deposits by pension and retirement funds.
- Deposits by a credit institution's own directors, managers, members personally liable, holders of at least 5% of the institution's capital, persons responsible for carrying out the statutory audits of the institution's accounting documents and depositors of similar status in other companies in the same group.
- Deposits by close relatives and third parties acting for the depositors referred to in the paragraph above.
- Deposits by other companies in the same group which provide consolidated accounts.
- Non-nominative deposits.
- Deposits for which the depositor has, on an individual basis, obtained from the same institution rates and financial concessions which have helped to aggravate its financial situation.
- Debt securities issued by the same institution and liabilities arising out of own acceptances and promissory notes.
- Deposits by companies which are not permitted to draw up abridged balance sheets.
For the purposes of calculating the Sterling equivalent of accounts, participants should use the same rates as set out in the latest newsletter on the FSC website which is used for the purposes of the supervisory quarterly returns.
Frequency of return
For the purposes of calculating an apportionment of levies, the Act requires that an average of the last three returns be used.
The Board has decided that the return of potential compensation should be completed and returned on a quarterly basis. This must be submitted 21 days after each period end.
The Board retains the right to seek additional reports at any given time as well as requiring that these reports be audited in accordance with Schedule 2 of the Act. For this reason, it is essential that participants maintain adequate audit trails of how the return was completed.
Feedback
The results of the quarterly survey will be collated into a table and distributed amongst participants. Each participant will be able to identify its own position within the table but this will not be known to other participants.