COMP 16
Disclosure requirements for firms that accept deposits
COMP 16.1
Application and purpose
- 30/06/2009
COMP 16.1.1
See Notes
This chapter applies to:
- 30/06/2009
COMP 16.1.2
See Notes
The purpose of this chapter is to set out the information about compensation that these firms must disclose, how frequently that information should be disclosed and the methods of communication which should be used.
- 01/01/2010
COMP 16.2
Informing depositors of limitations to coverage
- 30/06/2009
COMP 16.2.1
See Notes
(1) If a protected deposit is not protected by the compensation scheme, the firm must inform the depositor accordingly.
(2) A firm must make the information required by (1) available in a readily comprehensible manner.
[Note: article 9(1) of the Deposit Guarantee Directive]
- 30/06/2009
COMP 16.2.2
See Notes
When providing the information required by COMP 16.2.1 R, a firm must use the communication channels it normally uses when communicating with its depositors.
- 30/06/2009
COMP 16.3
UK domestic firms, non-EEA firms and incoming EEA firms
- 01/01/2010
UK domestic firms and non-EEA firms
COMP 16.3.1
See Notes
A firm that is a UK domestic firm or a non-EEA firm 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 covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a [bank/building society/credit union - delete as appropriate] is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to [insert FSCS maximum payment for protected deposits]. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be [insert FSCS maximum payment for protected deposits] each (making a total of [insert FSCS maximum payment for protected deposits x 2]). The [insert FSCS maximum payment for protected deposits] limit relates to the combined amount in all the eligible depositor's accounts with the [bank/building society/credit union - delete as appropriate], including their share of any joint account, and not to each separate account. For further information about the scheme(including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call [insert FSCS phone number]." |
- 01/01/2010
COMP 16.3.2
See Notes
A UK domestic firm that discloses the information required to be disclosed by COMP 16.3.1 R to persons that hold protected deposits through an overseas branch may do so in the local language.
- 01/01/2010
Incoming EEA firms that accept deposits through UK branches and have not obtained top-up cover
COMP 16.3.3
See Notes
An incoming EEA firm that accepts deposits through a UKbranch and has not obtained top-up cover must disclose the following information to any
deposit
holder with that branch who is or is likely to be eligible to claim for compensation from the firm'sHome State compensation scheme.
| "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] which is also based in [insert name of Home State]. This means that if our bank is unable to meet its financial obligations, our eligible UK depositors would be entitled to claim up to £ [insert Home State compensation scheme maximum payment for deposits] from the [insert name of Home State compensation scheme]. [State any significant conditions that compensation is subject to e.g. if paid on a per account or per depositor basis, and if set-off applies]. For further information about the [insert name of Home State compensation scheme] (including the amounts covered and eligibility to claim) please contact your branch or refer to [insert contact details of the Home State compensation scheme]." |
- 06/04/2010
Incoming EEA firms that accept deposits through UK branches and have obtained top-up cover
COMP 16.3.4
See Notes
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] 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 ] and the FSCS is only responsible for paying the second part of compensation - being above £ [insert Home State compensation scheme maximum payment for deposits ] 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].
|
- 06/04/2010
Incoming EEA firms: conversion of home state compensation scheme limit to sterling
COMP 16.3.5
See Notes
When an
incoming EEA firm
inserts the Home State compensation scheme maximum payment for
deposits
in the disclosure required by this section, that amount should be converted into pounds sterling and the exchange rate noted in a footnote. The exchange rate used should be updated regularly.
- 06/04/2010
Frequency of communication
COMP 16.3.6
See Notes
(1) A firm must provide the information required to be disclosed by this section on at least a 6 monthly basis.
(2) If a firm normally communicates with a protected deposit holder or a deposit holder protected by the incoming EEA firm'sHome State compensation schemeless frequently than every 6 months (1) does not apply and the firm must provide the information required to be disclosed by this section on at least an annual basis.
- 06/04/2010
COMP 16.3.7
See Notes
The
FSA
considers monthly, quarterly or 6 monthly account statements to be a means of communication for these purposes.
- 01/01/2010
Method of communication
COMP 16.3.8
See Notes
(1) If the recipient receives paper statements, the information required to be disclosed by this section must be prominently displayed in the relevant paper statement.
(2) If the recipient uses internet banking, the information required to be disclosed by this section must be communicated by electronic means in a way that brings it to the attention of the recipient.
(3) If the recipient does not receive paper statements or use internet banking the information required to be disclosed by this section must be communicated in a way that brings it to the attention of the recipient.
- 01/01/2010
COMP 16.3.9
See Notes
The
FSA
considers that if information required to be disclosed by this section is communicated by letter/leaflet sent through the post, email or a pop up box on the firm's internet website the requirement to communicate in a way that brings the information to the attention of the recipient will have been satisfied.
- 01/01/2010
Trading name disclosure
COMP 16.3.10
See Notes
Where a firm operates under more than one trading name, the firm must, in any communication required by this section to a
deposit
holder who is or is likely to be eligible to claim for compensation from the compensation scheme or other Home State compensation scheme and generally in its UKbranches and on its website, prominently disclose the trading names under which it operates and explain the impact this has on any
deposit
holder's entitlement to compensation from the compensation scheme and any relevant Home State or Host State compensation scheme.
- 06/04/2010
Further disclosure
COMP 16.3.11
See Notes
A firm should ensure that all communications to consumers about compensation for protected deposits and deposits protected by an incoming EEA firm'sHome State compensation scheme are clear, fair and not misleading.
- 06/04/2010
COMP 16.3.12
See Notes
A firm should also consider its obligations under the Credit Institutions (Protection of Depositors) Regulations 1995.
- 01/01/2010