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Application provision

1.1 The changes to this rule are effective from 23:00 on 31/12/2020.

Unless otherwise stated, this Part applies to:

  1. (1) the FSCS;
  2. (2) UK banks;
  3. (3) credit unions;
  4. (4) Northern Ireland credit unions;
  5. (5) building societies; and
  6. (6) an overseas firm, if:
    1. (a) the firm has a Part 4A permission that includes accepting deposits; and
    2. (b) deposits are held by a UK establishment of the firm.

Section A (up to and including 31 December 2016)

03/07/2015

A deposit is excluded from protection if:

  1. (1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, bank building society or credit union.
  2. (2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
  3. (3) It is a deposit made by a depositor which is one of the following:
    • credit institution
    • financial institution
    • investment firm
    • insurance undertaking
    • reinsurance undertaking
    • collective investment undertaking
    • pension or retirement fund1
    • public authority, other than a small local authority.

The following are deposits, categories of deposits or other instruments which will no longer be protected from 3 July 2015:

    • deposits of a credit union to which the credit union itself is entitled 
    • deposits which can only be proven by a financial instrument2 unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which exists in a Member State on 2 July 2014)
    • deposits of a collective investment scheme which qualifies as a small company3
    • deposits of an overseas financial services institution which qualifies as a small company4
    • deposits of certain regulated firms (investment firms, insurance undertakings and reinsurance undertakings) which qualify as a small business or a small company5 – refer to the FSCS for further information on this category
For further information about exclusions, refer to the FSCS website at www.FSCS.org.uk

1 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded

2 Listed in Section C of Annex 1 of Directive 2014/65/EU

3 Under the Companies Act 1985 or Companies Act 2006

4 See footnote 3

5 See footnote 3

Section B (from 1 January 2017)

03/07/2015

A deposit is excluded from protection if:

  1. (1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, bank building society or credit union.
  2. (2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
  3. (3) It is a deposit made by a depositor which is one of the following:
    • credit institution
    • financial institution
    • investment firm
    • insurance undertaking
    • reinsurance undertaking
    • collective investment undertaking
    • pension or retirement fund6 
    • public authority, other than a small local authority.
For further information about exclusions, refer to the FSCS website at www.FSCS.org.uk

6 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded

Section C (from IP completion day)

31/12/2020

This rule is effective from 23:00 on 31/12/2020.

A deposit is excluded from protection if:

  1. (1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, bank building society or credit union.
  2. (2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
  3. (3) It is a deposit made by a depositor which is one of the following:
    • credit institution
    • financial institution
    • investment firm
    • insurance undertaking
    • reinsurance undertaking
    • collective investment undertaking
    • pension or retirement fund1
    • public authority, other than a small local authority.
  1. (4) It is a deposit of a credit union to which the credit union itself is entitled.
  2. (5) It is a deposit which can only be proven by a financial instrumentunless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which existed in the UK, Gibraltar or a Member State of the EU on 2 July 2014).
  3. (6) It is a deposit of a collective investment scheme which qualifies as a small company.3
  4. (7) It is a deposit of an overseas financial services institution which qualifies as a small company.4
  5. (8) It is a deposit of certain regulated firms (investment firms, insurance undertakings and reinsurance undertakings) which qualify as a small business or a small company5 refer to the FSCS for further information on this category.
  6. (9) It is not held by an establishment of a bank, building society or credit union in the UK or, in the case of a bank or building society incorporated in the UK, it is not held by an establishment in Gibraltar.
For further information about exclusions, refer to the FSCS website at www.FSCS.org.uk

1 Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded

2 As listed in Part I of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, read with Part 2 of that Schedule

3 Under the Companies Act 1985 or Companies Act 2006

4 See footnote 3

5 See footnote 3