19
Disclosure of Transfer of Deposits
19.1
In the case of a merger, conversion of subsidiaries into branches, transfer or similar operations, a firm must:
- (1) inform depositors at least one month before the operation takes legal effect, save where the PRA allows a shorter deadline on grounds of commercial secrecy or financial stability; and
- (2) where a consequence of the operation will be a reduction in the aggregate amount of a depositor's coverage compared with what would have been the case if the operation had not occurred, give depositors a three month period following notification in accordance with (1), to withdraw or transfer to another institution, without incurring any penalty, such part of their eligible deposits, together with any accrued interest and other benefits, as exceed the coverage level pursuant to 4.2 at the time of the operation.
[Note: Art. 16(6) of the DGSD]
- 01/07/2023