Prudential Regulation Authority Rulebook

5.1

This Chapter applies only to the FSCS.

5.2

Compensation shall be calculated by reference to eligible deposits held on the compensation date.

[Note: Art. 7(4) of the DGSD]

5.3

The limit provided for in 4.2 applies to the aggregate eligible deposits placed by a depositor with the same credit institution, irrespective of the number of accounts, the currency, or the location within the EEA.

[Note: Art. 7(1) of the DGSD]

5.4

The share of each depositor of a joint account shall be considered separately in calculating the limits provided for in 4.2 and 4.3, except where 5.5 applies. In the absence of contrary provision, the joint account shall be divided equally among the depositors to the nearest penny.

[Note: Art. 7(2) of the DGSD]

5.5

Deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, without legal personality, must be aggregated and treated as if made by a single depositor for the purpose of calculating the limits provided for in 4.2 and 4.3.

[Note: Art. 7(2) of the DGSD]

5.6

Where several persons are absolutely entitled to a beneficial interest in a deposit, the share of each, under the arrangements subject to which the deposit is managed, shall be considered separately in calculating the amount payable to each of them.

[Note: Art. 7(3) of the DGSD]

5.7

Where several persons are absolutely entitled to a beneficial interest in a deposit, and some of them are persons whose own deposits would not be eligible deposits, the FSCS must adjust the amount of the overall deposit to eliminate the part of it which, in the FSCS’s view, relates to those beneficiaries’ interest in the overall deposit.

5.8

Liabilities of the depositor against the DGS member shall not be taken into account when calculating the compensation sum.

[Note: Art. 7(4) of the DGSD]

5.9

Except where the compensation sum arises from a temporary high balance, the FSCS shall reimburse interest owed on eligible deposits which had accrued, but has not been credited, at the compensation date. The limit provided for in 4.2 shall not be exceeded by the payment of any such interest.

[Note: Art. 7(7) of the DGSD]