In certain non-EEA countries, if a firm becomes insolvent, the claims of depositors in the home country will be preferred above the claims of depositors outside the home country, including the depositors of the UK branch. We want firms from non-EEA countries that operate these national depositor preference regimes to take steps to address the subordination of the claims of UK branch depositors compared to those of home country depositors.
In September 2012, the Financial Services Authority (FSA) published a consultation paper (CP12/23) setting out proposals to address the subordination of UK branch depositors compared to home country depositors of firms from non-EEA countries that operate national depositor preference regimes. The Prudential Regulation Authority has adopted this consultation paper.
The consultation on addressing the implications of non-EEA national depositor preference regimes published in September 2012 was scheduled to close in December 2012. We extended the closing date to January 2013 to give interested parties more time to respond.
Having reviewed the responses received, we are revisiting the timetable for implementation of the policy and will provide an updated implementation schedule in due course.