Depositors Compensation Scheme: Updated Notice Designating Banking Groups

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A decision made on 20 August 2012:

Decision Reference: MD-E-2012-0095

Decision Summary Title :

Notice designating banking groups under the Depositors Compensation Scheme

Date of Decision Summary:

August 2012

Decision Summary Author:

Director, Finance Industry Development

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

Written Report

Title :

Notice designating banking groups under the Depositors Compensation Scheme

Date of Written Report:

August 2012

Written Report Author:

Director, Finance Industry Development

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Designation of banking groups under Regulation 6 of the Banking Business (Depositors Compensation) (Jersey) Regulations 2009 (“the DCS Regulations”).

Decision(s):

The Minister designated the banking groups set out in the attached Notice under Regulation 6 of the DCS Regulations and directed that the Notice be published so as to bring it to the attention of those affected by it.

Reason(s) for Decision:

The DCS Regulations came into force on 6 November 2009 and provide that the Minister may, for the purpose of calculating the levy and compensation to be paid in respect of associated banks, group banks. This Notice updates and replaces the Notice published in July 2012 following the registration of a new bank in Jersey.

The Deputy Chief Minister is making this decision under delegated authority as per MD-C-2012-0081.

Resource Implications:

There are no financial or manpower implications for the States or the JFSC. The Notice will affect the amount of funding derived from bank levies received by the Jersey Bank Depositors Compensation Board as grouped banks are regarded as a single bank for the purposes of paying these levies.

Action required:

Economic Development officers to take the steps relating to publishing the Notice so as to bring it to the attention of those affected by it.

Signature:

Senator Ian Le Marquand

Position:

Deputy Chief Minister

Date Signed:

Date of Decision (If different from Date Signed):

Depositors Compensation Scheme: Updated Notice Designating Banking Groups

MINISTER FOR ECONOMIC DEVELOPMENT (“The Minister”)

UPDATED NOTICE DESIGNATING BANKING GROUPS UNDER THE DEPOSITORS COMPENSATION SCHEME

1 THE ISSUE AND RECOMMENDATION

1.1 The Banking Business (Depositors Compensation) (Jersey) Regulations 2009 (“DCS Regulations”) provide that the Minister may group banks for the purposes of the Depositors Compensation Scheme (“DCS”).

1.2 The first Notice grouping banks was published in November 2009 and this was updated in July 2012. Since then an existing banking group has registered a new bank in Jersey, meaning that the Notice grouping banks must be updated.

1.3 It is recommended that the Minister should designate the updated banking groups set out in the attached updated Notice (see Supporting Document 1); that his officials arrange for the Notice to be published so as to bring it to the attention of those affected by it.

1.4 There are no financial for manpower implications for the States of Jersey.

1.5 The Notice will affect the amount of funding derived from bank levies received by the Jersey Bank Depositors Compensation Board as grouped banks are regarded as a single bank for the purposes of paying these levies.

2 GROUPING BANKS

2.1. The DCS Regulations were approved by the States on 6 November 2009 and came into force immediately. Under Regulation 6, the Minister may, for the purpose of calculating the levy and compensation to be paid in respect of associated banks, group banks.

2.2. The Minister may do so by Notice published in a manner that is likely to bring the notice to the attention of those affected by it. It is considered that publication of the Notice on the States website and in the Jersey Gazette will achieve this.

2.3. The updated Notice will designate 8 banking groups, with banks grouped based on the degree of association between them, e.g. where banks are under common ownership.

3 RECOMMENDATION

3.1. It is recommended that the Minister should designate the banking groups set out in the attached updated Notice (see Supporting Document 1); and that his officials arrange for the Notice be published so as to bring it to the attention of those affected by it.

Director, Finance Industry Development

15 August 2012