Rule 32 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 73—

(a)

for paragraph (2), substitute—

“(2)
Rule 72 shall apply but, for the purpose of determining the sums due from the bank to the eligible depositor in respect of protected deposits under rule 72(3)—

(a)
where the total of sums held by the bank for the depositor in respect of protected deposits is no more than the amount prescribed as the maximum compensation payable in respect of protected deposits under Part 15 of the Financial Services and Markets Act 2000 (“the limit”), then paragraph (3) applies; and

(b)
where the sums exceed the limit, then paragraph (4) applies.”;

(b)

in paragraph (3)—

(i)

for “Where paragraph (2)(a) applies,” substitute “Where this paragraph applies”, and

(ii)

omit “eligible”;

(c)

in paragraph (4)—

(i)

for “Where paragraph (2)(b) applies,” substitute “Where this paragraph applies”;

(ii)

in sub-paragraph (a), for “that total” substitute “the total of sums due to the depositor”, and

(iii)

in paragraph (b)—

(aa)

for “eligible depositor” where it first occurs, insert “the depositor in respect of the protected deposits”, and

(bb)

for sub-paragraphs (i) and (ii), substitute—

“(i)
the amount by which that total exceeds the limit, set off against the amounts due to the bank from the depositor in accordance with rule 72(3), and

(ii)
the sums held by the bank for the depositor in respect of protected deposits up to the limit.”;

(d)

in paragraph (5)—

(i)

for “set off”, substitute “set-off”, and

(ii)

at the end insert “in so far as they relate to protected deposits.”; and

(e)

for paragraph (6) substitute—

“(6)
In this rule—

“eligible depositor” has the meaning given by section 93(3) of the 2009 Act;

“FSA Rules” means the FSA’s Compensation Sourcebook, as amended from time to time, made under section 213 of the Financial Services and Markets Act 2000^f1; and

“protected deposit” means a protected deposit within the meaning given by FSA Rules.”.

Annotations

Footnotes

f1: 2000 c.8.