P.2018/93 - Committee for Economic Development
The States are asked to decide:-
Whether, after consideration of the Policy Letter entitled 'proposed amendments to the Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 dated 20th September 2018, they are of the opinion:-
1. To approve the proposals set out in section 3 of the Policy Letter to amend the Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance") as follows:
a. to increase the existing aggregate payment cap, applicable to participant banks in section 18(4)(a)
of the Ordinance, from £1,000,000 to £2,000,000 in any calendar year;
b. to repeal the three year profits cap, applicable to participant banks, in section 18(4)(b) of the
Ordinance;
c. to allow for negative interest rates and to protect against possible adverse effects upon
participant banks and the Guernsey Banking Deposit Compensation Scheme (the "Scheme");
d. to clarify that each participant bank's duty to co-operate with the Scheme board (the "Board")
includes the provision of personal data, where required, and to explicitly require participant
banks to provide data promptly to the Board;
e. to amend section 18(7)(c)(i) of the Ordinance, to provide that payment by participant banks must
be made within five (5) working days of the issue of payment levy notices by the Scheme; and
f. to repeal the fourteen (14) day restriction during which the Scheme is prohibited from requesting
payment, from the participant banks, in respect of the second levy notice.
2. To direct the preparation of such legislation as may be necessary to give effect to the above decisions.
The above Propositions have been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.
