First published on 1 April 2015
This statement of policy is aimed at the Financial Services Compensation Scheme (FSCS) in respect of its role as scheme manager of the Deposit Guarantee Scheme (DGS). This statement may also be of interest to firms and depositors.
The purpose of this statement is to set out the expectations of the Prudential Regulation Authority (PRA) on the FSCS with regards to:
- the duties of the FSCS;
- the FSCS’s role in assessing and paying compensation in respect of deposits;
- the FSCS’s role in assessing and paying temporary high balance (THB) claims; and
- the FSCS’s role in the funding of the DGS.
By providing further information to the FSCS with regards to its duties and role in paying and funding compensation in respect of deposits, this statement should help to ensure an effective deposit guarantee scheme and thus contribute towards the safety and soundness of deposit takers.
This statement of policy is intended to be read together with the rules specific to deposits as set out in the Depositor Protection Part of the PRA Rulebook, which applies to the FSCS, and firms that are DGS members. The funding section is also intended to be read with the Management Expenses Levy Limit and Base Costs Part and the Management Expenses in respect of Relevant Schemes Part which also apply to PRA-authorised insurers and the Society of Lloyd’s.