PRA publishes policy statement on depositor protection rules changes

PRA has published a policy statement providing feedback on responses to its consultation on depositor protection. It also contains PRA’s final rules concerning the relevant amendments to the Depositor Protection (DP) Part of its Rulebook.

In the consultation, PRA proposed to amend Rule 6.2 and make other changes to the DP rules. The amendments sought to clarify that the FSCS DP regime covers FSCS eligible customers of:

  • e-money institutions;
  • authorised payment institutions;
  • small payment institutions; and
  • credit unions (in respect of e-money)

should a credit institution holding such firms’ safeguarded funds fail.

Respondents welcomed the proposal, but made some requests for clarification. These are set out in chapter 2 of the policy statement. Some minor changes were made to the consultation proposals.

The changes to the DP Rules came into effect on 12 March 2023.


Laura Wiles