Depositor and dormant account protection

Policy Statement 6/15
Published on 01 April 2015

This policy statement (PS) provides feedback to responses to CP20/14 Depositor protection and CP4/15 Depositor, dormant account and policyholder protection - amendments. It sets out final rules intended to advance the Prudential Regulation Authority’s (PRA’s) general objective of promoting the safety and soundness of firms by reducing the adverse effects the failure of firms could be expected to have on the stability of the UK financial system.


The package of measures across the PRA’s consultations supports the orderly resolution of deposit-takers and effective compensation or continuity for depositors with deposits covered by the Financial Services Compensation Scheme (FSCS). 

CP20/14 set out proposed changes to PRA rules in order to implement the recast Deposit Guarantee Schemes Directive (DGSD), new rules intended to enable depositors protected by the FSCS to have continuity of access to their accounts during resolution, as well as changes to the existing Single Customer View rules on firms.

CP4/15 set out proposals for transitional provisions and new rules in the PRA Rulebook and consequential amendments to the PRA Handbook that arise as a result of the rules being proposed in Depositor protection CP20/14.

The depositor protection rules and supervisory statements take effect from 3 July 2015, except for the rules on SCV and CoA (Depositor Protection Chapters 12 to15). These rules take effect from 1 December 2016, at which point Depositor Protection 9.6(2) and Chapters 49 to 52 will be deleted.

The policy statement is relevant to:

  • UK banks, building societies and credit unions, as well as to overseas firms with a deposit-taking permission, UK branches of European Economic Area (EEA) credit institutions and dormant account fund operators.
  • The FSCS, as the UK’s Deposit Guarantee Scheme (DGS), and depositors, as beneficiaries of deposit protection.
  • PRA-authorised insurers and the Society of Lloyd’s are referred to proposed rules set out in the Management Expenses Levy Limit and Base Costs Part and the Management Expenses in respect of Relevant Schemes Part.

Final rules on policyholder protection in response to CP21/14 Policyholder protection are set out in PS5/15.

Proposals addressed by PS6/15

In light of feedback received to CP20/14 and CP4/15, some of the proposals have been revised. For example:

  • where a host DGS is paying compensation on behalf of the FSCS, payment will be in the host state currency (rather than sterling);
  • the PRA has set out additional guidance regarding how it expects firms to meet recast DGSD disclosure requirements in the depositor protection supervisory statement (SS18/15) and included a new rule requiring firms to provide a list of exclusions from eligibility to depositors alongside the information sheet (replacing a previous general requirement); and
  • the PRA is making minor amendments to the SCV and CoA rules, as well as to the corresponding guidance in SS18/15. The timeline for implementation of SCV and CoA rules has also been extended to 1 December 2016 in light of outstanding related issues in CP15/15.

The PRA has also given additional clarity in a supervisory statement (SS18/15) and statements of policy.

Summary of content

The appendices to the PS set out:

  1. the Depositor Protection Part of the PRA Rulebook;
  2. the Dormant Account Scheme Part of the PRA Rulebook;
  3. the Management Expenses and Base Costs Part of the PRA Rulebook;
  4. the Management Expenses in respect of Relevant Schemes Part of the PRA Rulebook;
  5. consequential amendments to the existing rules which are administrative and do not represent a change in policy;
  6. a supervisory statement for firms setting out the PRA’s expectations in respect of Depositor Protection Part of the PRA Rulebook (SS18/15);
  7. a statement of policy setting out the PRA’s expectations of the FSCS in respect of Depositor Protection Part of the PRA Rulebook; and
  8. a statement of policy setting out the PRA’s expectations of the FSCS in respect of Dormant Account Scheme Part of the PRA Rulebook.

Further consultation

Where a material change in policy is proposed, the PRA has set out revised proposals in CP15/15 – see Related Links. For example, the PRA is proposing to extend eligibility for DGS cover to local authorities with an annual budget of less than €500,000. The PRA is also proposing to extend CoA requirements in relation to overdrawn accounts.

PDFPolicy Statement 6/15

Supervisory Statement 18/15

Statements of Policy

Dormant Account Scheme

Deposit Guarantee Scheme

Other prudential regulation releases