The Credit Institutions (Protection of Depositors)Regulations 1995

Eligibility to participate in scheme

3.—(1) An EEA institution which accepts or proposes to accept deposits through offices in the United Kingdom shall be eligible to participate in a UK scheme if the Deposit Protection Board (“the Board”) determines under this regulation, on an application made by the institution, that it is so eligible; and an application under this paragraph may state a preference for one or other of the UK schemes.

(2) The Board shall not make a determination under this regulation unless, after consultation with such of the relevant authorities (if any) as it considers appropriate, it is satisfied that—

(a) the scope of the protection afforded to depositors by the institution’s home State scheme; or

(b) the level of the protection so afforded,

is less than that afforded to depositors by the UK scheme specified in the determination.

(3) Whether or not the Board is satisfied as mentioned in paragraph (2) above, it shall decide which of the UK schemes appears to be the more appropriate for the institution, having regard to whether the institution’s characteristics correspond more closely to those of a UK institution or to those of a building society.

(4) The Board shall not under paragraph (3) above—

(a) decide in favour of the investor protection scheme except with the consent of the Investor Protection Board; or

(b) decide in favour of the deposit protection scheme, in a case where the application stated a preference for the investor protection scheme, except after consulting with that Board.

(5) Written notice of a decision of the Board under paragraph (2) or (3) above, stating the reasons for it, shall be given to the institution—

(a) within 90 days after the day on which the institution’s application is received by the Board; or

(b) within that period and such additional period, not exceeding 30 days, as the Bank may in exceptional circumstances allow.

(6) In this regulation and regulation 6 below “the relevant authorities” means—

(a) the Bank, the Commission and the supervisory authority in the institution’s home State; and

(b) the Investor Protection Board and the authority responsible for the institution’s home State scheme.