PS4/21 | CP3/21 Depositor Protection: Identity verification

Policy Statement 4/21 | Consultation Paper 3/21

Published on 24 March 2021

Depositor protection: Identity verification – PS4/21

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 3/21 ‘Depositor protection: Identity verification’ (page 2 of 2). It also contains the PRA’s final policy, as follows:

  • amendments to the Depositor Protection (DP) Part of the PRA Rulebook (Appendix 1); and
  • updates to Supervisory Statement (SS) 18/15 ‘Depositor and dormant account protection’ (Appendix 2).
This PS is relevant to the Financial Services Compensation Scheme (FSCS), all PRA-authorised deposit takers, and insolvency practitioners (IPs). This PS contains no material of direct relevance to retail financial services consumers or consumer groups upon which they might need to act.

Summary of responses

The PRA received two responses to the CP. The PRA’s feedback to these responses is set out in Chapter 2. 

Both responses were supportive of the proposal to allow identity verification to be carried out after the compensation date for the purposes of determining FSCS protection eligibility. One response requested clarification on how the rule changes would impact existing Single Customer View (SCV) and Exclusions file requirements. The other respondent noted potential operational concerns relating to the costs of carrying out the identity verification and the transferability of the identity verification responsibilities. 

Implementation

The changes outlined in this PS will take effect on Monday 29 March 2021.

Policy Statement 4/21

Appendix

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