Prudential Regulation Authority Rulebook

4.1

This Chapter applies only to the FSCS.

4.2

The maximum compensation sum payable for the aggregate eligible deposits of each depositor is £85,000, save that additional compensation may be payable in cases to which 4.3 or 4.4 apply.

[Note: Art. 6(1) of the DGSD]

[Note: Regulation 7A of the deposit guarantee scheme regulations provides for a transitional maximum compensation level of £85,000 until 31 December 2015 for depositors who were, or would have been, eligible for compensation before 3 July 2015 and are eligible for compensation on and after 3 July 2015.]

4.3

Subject to 4.4, the maximum compensation sum payable for a temporary high balance is £1,000,000, save that no limit shall apply to the compensation payable for a temporary high balance arising from a payment in connection with personal injury or incapacity.

[Note: Art. 6(2) of the DGSD]

4.4

1. (1) The maximum compensation sums in 4.2 and/or 4.3 are temporarily increased if, following the death of a holder of a joint account in which an eligible deposit is held:
1. (a) the deceased’s share passes automatically to at least one other depositor, and
2. (b) at least one person is:
1. (i) an individual absolutely entitled to the whole or part of the eligible deposit (including under a trust an individual with a vested beneficial interest in the eligible deposit as at the compensation date); or
2. (ii) a trustee holding the eligible deposit on behalf of individuals who do not have a vested beneficial interest in it as at the compensation date (treating co-trustees as a single person, in accordance with 6.5);
2. (2) the temporary increase under (1) is calculated by dividing each maximum compensation sum that would have been attributable to the deceased between each person referred to in (1)(b);
3. (3) in the absence of contrary provision, such division shall be made equally to the nearest penny;
4. (4) where more than one holder of the joint account dies, the provisions of this rule are cumulative; and
5. (5) any increase in a maximum compensation sum under this rule applies for a period of six months, beginning with the relevant date of death.