COMP 16

Disclosure requirements for firms that accept deposits

COMP 16.1

Application and purpose

COMP 16.1.1

See Notes

handbook-rule
This chapter applies to:

COMP 16.1.2

See Notes

handbook-guidance
The purpose of this chapter is to set out the information about compensation that these firms must disclose, how frequently that information should be disclosed and the methods of communication which should be used.

COMP 16.2

Informing depositors of limitations to coverage

COMP 16.2.1

See Notes

handbook-rule
(1) If a protected deposit is not protected by the compensation scheme, the firm must inform the depositor accordingly.
(2) A firm must make the information required by (1) available in a readily comprehensible manner.
[Note: article 9(1) of the Deposit Guarantee Directive]

COMP 16.2.2

See Notes

handbook-rule
When providing the information required by COMP 16.2.1 R, a firm must use the communication channels it normally uses when communicating with its depositors.

COMP 16.3

UK domestic firms, non-EEA firms and incoming EEA firms

UK domestic firms and non-EEA firms

COMP 16.3.1

See Notes

handbook-rule
A firm that is a UK domestic firm or a non-EEA firm must disclose the following information to any protected deposit holder with that firm who is or is likely to be an eligible claimant.

COMP 16.3.2

See Notes

handbook-guidance
A UK domestic firm that discloses the information required to be disclosed by COMP 16.3.1 R to persons that hold protected deposits through an overseas branch may do so in the local language.

Incoming EEA firms that accept deposits through UK branches

COMP 16.3.3

See Notes

handbook-rule
An incoming EEA firm that accepts deposits through a UKbranch must disclose the following information to any deposit holder with that branch who is or is likely to be eligible to claim for compensation from the firm'sHome State compensation scheme.

Incoming EEA firms: conversion of home state compensation scheme limit to sterling

COMP 16.3.5

See Notes

handbook-guidance
When an incoming EEA firm inserts the Home State compensation scheme maximum payment for deposits in the disclosure required by this section, that amount should be converted into pounds sterling and the exchange rate noted in a footnote. The exchange rate used should be updated regularly.

Frequency of communication

COMP 16.3.6

See Notes

handbook-rule
(1) A firm must provide the information required to be disclosed by this section on at least a 6 monthly basis.
(2) If a firm normally communicates with a protected deposit holder or a deposit holder protected by the incoming EEA firm'sHome State compensation schemeless frequently than every 6 months (1) does not apply and the firm must provide the information required to be disclosed by this section on at least an annual basis.

COMP 16.3.7

See Notes

handbook-guidance
The FSA considers monthly, quarterly or 6 monthly account statements to be a means of communication for these purposes.

Method of communication

COMP 16.3.8

See Notes

handbook-rule
(1) If the recipient receives paper statements, the information required to be disclosed by this section must be prominently displayed in the relevant paper statement.
(2) If the recipient uses internet banking, the information required to be disclosed by this section must be communicated by electronic means in a way that brings it to the attention of the recipient.
(3) If the recipient does not receive paper statements or use internet banking the information required to be disclosed by this section must be communicated in a way that brings it to the attention of the recipient.

COMP 16.3.9

See Notes

handbook-guidance
The FSA considers that if information required to be disclosed by this section is communicated by letter/leaflet sent through the post, email or a pop up box on the firm's internet website the requirement to communicate in a way that brings the information to the attention of the recipient will have been satisfied.

Trading name disclosure

COMP 16.3.10

See Notes

handbook-rule
Where a firm operates under more than one trading name, the firm must, in any communication required by this section to a deposit holder who is or is likely to be eligible to claim for compensation from the compensation scheme or other Home State compensation scheme and generally in its UKbranches and on its website, prominently disclose the trading names under which it operates and explain the impact this has on any deposit holder's entitlement to compensation from the compensation scheme and any relevant Home State or Host State compensation scheme.

Further disclosure

COMP 16.3.11

See Notes

handbook-guidance
A firm should ensure that all communications to consumers about compensation for protected deposits and deposits protected by an incoming EEA firm'sHome State compensation scheme are clear, fair and not misleading.

COMP 16.3.12

See Notes

handbook-guidance
A firm should also consider its obligations under the Credit Institutions (Protection of Depositors) Regulations 1995.