The Credit Institutions (Protection of Depositors)Regulations 1995

Participation in scheme

4.—(1) An EEA institution which is eligible to participate in the deposit protection scheme by virture of a determination under regulation 3 above shall cease to be so eligible unless, within two months after the date of the determination—

(a) it commences its participation in that scheme by paying to the Deposit Protection Board the amount which is specified in the determination in accordance with paragraph (2) below; or

(b) in the case of an institution which was participating in that scheme immediately before the commencement date and whose application under paragraph (1) of that regulation was made within six months of that date, it resumes its participation in that scheme by giving notice to that Board of its decision to do so.

(2) Where—

(a) a determination under regulation 3 above specifies the deposit protection scheme; and

(b) the institution is not such an institution as is mentioned in paragraph (1)(b) above,

the determination shall also specify the amount which the Deposit Protection Board considers would be determined in accordance with subsection (2) or (3) of section 53 of the 1987 Act (initial contributions) if the institution participated in the scheme.

(3) An EEA institution which is eligible to participate in the investor protection scheme by virtue of a determination under regulation 3 above shall cease to be so eligible unless, within two months after date of the determination, it conmmences its participation in that scheme by giving to the Investor Protection Board notice of its decision to do so.

(4) No initial contribution shall be levied under section 53 of the 1987 Act from an EEA institution which commences or resumes its participation in the deposit protection scheme in accordance with paragraph (1) above.

(5) The amount payable under sub-paragraph (a) of paragraph (1) above by an EEA institution which has withdrawn under regulation 5 below, or has been excluded under regulation 6 below, from participation in the deposit protection scheme shall be reduced by the aggregate of—

(a) any amount previously paid by the institution under that sub-paragraph;

(b) so much of any further contribution levied on the institution under section 54 of the 1987 Act as was attributable to an order under subsection (2) of that section; and

(c) if any previous participation in that scheme was resumed in accordance with sub-paragraph (b) of that paragraph, the amount of the initial contribution levied on the institution under section 53 of that Act.