Prudential Regulation Authority Rulebook

24.1

This Chapter applies to the FSCS.

24.2

The FSCS must administer the deposit guarantee scheme:

1. (1) in accordance with the rules in this Part and any other rules prescribed by law;
2. (2) in a manner that is procedurally fair; and
3. (3) in accordance with the European Convention on Human Rights.

24.3

The FSCS must publish for depositors on its website all necessary information:

1. (1) on the operation of the deposit guarantee scheme; and
2. (2) on the process, eligibility, exclusions from protection and conditions for payment of compensation,

including all information specified in the information sheet as being available on its website.

[Note: Art.16(1) and Art. 16(3) of the DGSD]

24.4

The FSCS may agree to pay the reasonable costs of a depositor bringing or continuing insolvency proceedings against a DGS member in respect of eligible deposits (whenever instituted), if the FSCS is satisfied that those proceedings would help it to discharge its functions under this Part.

24.5

The FSCS must have regard to the need to use its resources in an efficient and economic way in carrying out its functions under this Part.

24.6

The FSCS must perform stress tests of its systems relating to the payment of compensation in respect of eligible deposits at least once every three years and more frequently where the FSCS considers it necessary, with the first such stress test taking place by 3 July 2017.

[Note: Art. 4(10) of the DGSD]

24.7

The FSCS shall use the information necessary to perform stress tests of its systems relating to the payment of compensation in respect of eligible deposits only for the performance of those tests and shall keep such information no longer than is necessary for that purpose.

[Note: Art. 4(11) of the DGSD]

24.8

The FSCS must take appropriate steps to ensure that depositors are informed of the process for receiving compensation as soon as a possible after the compensation date.

24.9

The FSCS must inform the PRA immediately if it becomes aware of any instance of a firm not complying with its obligations as set out in this Part.

[Note: Art. 4(4) of the DGSD]

24.10

The FSCS must correspond with a depositor in any one of:

1. (1) English; or
2. (2) Welsh if that language is used by the firm which holds the eligible deposit when communicating with that depositor.

[Note: Art. 8(7) of the DGSD]

24.11

The FSCS must have in place sound and transparent governance practices.

[Note: Art. 4(12) of the DGSD]