Home | Databases | WorldLII | Search | Feedback Maltese Laws

Banking Act (Cap. 371) Depositor Compensation Scheme (Amendment) Regulations, 2006 (L.N.35 Of 2006 )

B 717
BANKING ACT (CAP. 371)
Depositor Compensation Scheme
(Amendment) Regulations, 2006
IN exercise of the powers conferred by article 3 and article 28A. of the Banking Act, the Prime Minister and Minister of Finance, acting on the advice of the Malta Financial Services Authority, has made the following regulations> -
1. The title of these regulations is the Depositor Compensation Scheme (Amendment) Regulations, 2006, and they shall be read and construed as one with the Depositor Compensation Scheme Regulations,
2003, hereinafter referred to as “the principal regulations”.
2. Immediately after regulation 1 of the principal regulations, there shall be added the following new regulation>

Citation.

L.N. 369 of 2003

.

Adds new

regulation 1A to the principal regulations.

“Scope.

1A. The objective of these regulations is to implement the relevant provisions of Directive 94#19#EC of the European Parliament and of the Council of 30th May 1994 on deposit guarantee schemes, and these regulations shall be interpreted and applied accordingly.”.
3. Regulation 2 of the principal regulations shall be amended as follows>
(a) for the definition “depositor”, there shall be substituted the following definition>
“ “depositor” means any person who has entrusted a deposit to a credit institution, to the exclusion of persons listed in the First Schedule to these regulations<”< and
(b) immediately after the new definition “depositor”, there shall be inserted the following new definition>
“ “designated currency” means the currency of any EEA State<”< and
(c) immediately after the definition “designated currency”, there shall be inserted the following new definition>

Amends regulation

2 of the principal regulations.

B 718

Amends regulation

3 of the principal regulations.

Amends regulation

4 of the principal regulations.

Amends regulation

8 of the principal regulations.

Amends regulation

11 of the principal regulations.

“ “EEA state” means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May 1992, as amended by the protocol signed at Brussels on 17th March 1993, and as amended from time to time<”.
4. Immediately after sub-regulation (4) of regulation 3 of the principal regulations, there shall be inserted the following new sub- regulation>
“(5) For the purpose of enabling the Scheme and the competent authority to carry out their respective functions, the Scheme and the competent authority may share and exchange information, and shall otherwise consult and collaborate with one another.”.
5. In sub-regulation (2) of regulation 4 of the principal regulations, for words “protection for private depositors”, there shall be substituted the words “protection for depositors”.
6. In sub-regulation (3) of regulation 8 of the principal regulations, for the words “on the website of the competent authority.” there shall be substituted the words “on the websites of the competent authority and the Scheme.”.
7. Sub-regulations (1) and (2) of regulation 11 of the principal regulations shall be substituted by the following new sub-regulations>
“(1) Every credit institution which is licensed in Malta under the Act to accept deposits from depositors held in any designated currency shall participate in and contribute to the Scheme, including a branch of a credit institution operating in another state>
Provided that a branch of a credit institution operating in Malta which is licensed in a non-EEA state shall participate in and contribute to the Scheme, unless the Scheme has in force an agreement with the authority responsible for the management and administration of the scheme in that other state stipulating, inter alia, that the level or scope of cover provided for depositors in that state is equal or exceeds the level or scope of cover in Malta>
Provided further that a branch of a credit institution operating in Malta which is licensed in an EEA state may, at its own option, participate in and contribute to the Scheme only where the level or scope of the Scheme in Malta exceeds the level or scope of cover provided in the EEA state in which it is licensed.
(2) The Scheme may enter into a bilateral agreement with any authority responsible for the management and administration of a scheme set up in any other country stipulating, inter alia, the level or scope of cover as well as the rules and procedures to be followed for the payment of compensation to depositors, and in any such case, the guiding principles set out in Annex II of Directive
94#19#EC of the European Parliament and of the Council of 30th
May 1994 on deposit guarantee schemes shall, where appropriate, apply.”.
8. In sub-regulation (1) of regulation 12 of the principal regulations, for the words “the Second Schedule to these regulations.” there shall be substituted the words “the Second Schedule to these regulations, and these contributions shall not be refundable.”.
9. Regulation 17 of the principal regulations shall be amended as follows>
(a) the present provision shall be renumbered as sub- regulation (1) thereof and the proviso thereto shall be deleted<
(b) in sub-regulation (1) thereof as renumbered, for the words “the official closing middle rate”, there shall be substituted the words “the official opening middle rate”< and
(c) immediately after sub-regulation (1) thereof as renumbered, there shall be added the following new sub-regulation>
“(2) In calculating the amount of compensation to be paid out in terms of sub-regulation (1), all computations shall be made in the currency of the depositor’s eligible deposit and all payments of compensation shall be made in the same currency as the depositor’s eligible deposit.”.
10. Regulation 18 of the principal regulations shall be amended as follows>
(a) in sub-regulation (1) thereof, for the words “in an account or accounts denominated in Maltese lira held in Malta” there shall be substituted the words “in an account or accounts held in Malta in any designated currency”<
(b) paragraph (c) of sub-regulation (2) thereof shall be substituted by the following new paragraph>
B 719

Amends regulation

12 of the principal regulations.

Amends regulation

17 of the principal regulations.

Amends regulation

18 of the principal regulations.

B 720

Amends regulation

20 of the principal regulations.

Amends the First Schedule to the principal regulations.

Cap. 370.

“(c) deposits made by the categories of persons indicated in List A of the First Schedule to these regulations.”<
(c) immediately after sub-regulation (2) thereof, there shall be inserted the following new sub-regulation>
“(3) In this regulation and in regulation 19, the term “depositor” shall not include the categories of persons indicated in list B of the First Schedule to these regulations.”.
11. Regulation 20 of the principal regulations shall be amended as follows>
(a) in sub-regulation (1) thereof, for the words “Only persons being individuals falling within the definition of “depositor” in regulation 2 of these regulations” there shall be substituted the words “Only persons falling within the definition of “depositor” in regulation 2”<
(b) sub-regulation (2) thereof shall be deleted and sub- regulations (3), (4), (5) and (6) shall be renumbered as sub- regulations (2), (3), (4) and (5) respectively< and
(c) in sub-regulation (2) thereof as renumbered, for the words “are also excluded from claiming under the Scheme.”, there shall be substituted the words “are excluded from claiming under the Scheme.”.
12. For the First Schedule to the principal regulations there shall be substituted the following>
“First Schedule Exclusions (Regulations 2, 18, 20)
List A
The following are excluded from claiming under the Scheme>
1. Persons carrying on investment services within the meaning of the Investment Services Act, or equivalent or similar foreign legislation<
2. Credit institutions carrying on the business of banking within the meaning of the Act, or equivalent or similar foreign legislation<
3. Financial institutions within the meaning of the Financial
Institutions Act, or equivalent or similar foreign legislation<
4. Insurance undertakings carrying on the business of insurance within the meaning of the Insurance Business Act and the Insurance Brokers and Other Intermediaries Act, or under equivalent or similar foreign legislation<
5. Collective investment schemes<
6. Pension and retirement funds<
7. Companies which are of such a size that they are not permitted to draw up abridged balance sheets pursuant to the Companies Act, or under equivalent or similar foreign legislation<
8. Governments and administrative authorities, national and international institutions<
9. Local and municipal councils or authorities<
10. Debt securities issued by the same institution and liabilities arising out of own acceptances and promissory notes<
11. Persons holding accounts which do not disclose the depositor’s identity<
12. Companies and commercial partnerships in the same group as the relevant credit institution<
13. Nominees, trustees or other third parties acting on behalf or in the interest of the persons referred to in this Schedule to the extent of the funds held in such capacity.
List B
The following are depositors who cannot make a claim under the
Scheme>
1. Directors and managers of the relevant credit institution and members of the credit institution with personal liability, persons holding five percent or more of the capital of such credit institution, the auditors of the credit institution and persons of the same description with respect
B 721

Cap. 371.

Cap. 376.

Cap. 403 and

Cap 404.

Cap. 386.

B 722

Cap. 373.

Amends the Second Schedule to the principal regulations.

to a company forming part of the same group of companies as the credit institution<
2. Close relatives, that is, ascendants, descendants or the spouse of the persons referred to in paragraph 1<
3. Depositors who have any responsibility for or have taken advantage of certain facts relating to a credit institution which gave rise to the credit institution’s financial difficulties or contributed to the deterioration of its financial situation<
4. Depositors in respect of transactions in connection with which a criminal conviction has been obtained for money laundering in terms of the Prevention of Money Laundering Act, or under equivalent or similar foreign legislation.
13. Immediately after the proviso to paragraph (g) of item 2 of the Second Schedule to the principal regulations, there shall be inserted the following new paragraph (h)>
“(h) In the case of eligible deposits held in a designated currency other than in Maltese lira, the Supplementary Contribution shall be calculated on the Maltese lira equivalent of such eligible deposits and in all cases shall be paid in Maltese lira.” .

Ippubblikat mid-Dipartiment ta’ l-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Prezz 24ç – Price 24c