Banking Business (Depositors Compensation) (Jersey) Regulations 2009

Official Consolidated Version

This is an official version of consolidated legislation compiled and issued under the authority of the Legislation (Jersey) Law 2021.

 

Showing the law from 1 April 2026 to Current

 

 

Banking Business (Depositors Compensation) (Jersey) Regulations 2009

Regulation

interpretation   4

1             Interpretation. 4

2                              6

3                              6

4                              6

5                              6

6                              6

7                              6

The Jersey Bank Depositors Compensation Board   6

8             Jersey Bank Depositors Compensation Board. 6

8AA        Continuation of the Board. 6

8A          Continuing functions of the Board. 6

9             Independence of Board. 7

10           Constitution of the Board. 7

11           Terms and conditions of appointment of members of the Board. 7

12           Procedures of the Board. 8

13           Limitation of liability. 8

14           Accounts and report. 9

The BANK DEPOSITORS COMPENSATION scheme  10

Obligations of the Board

15                         10

16                         10

17                         10

18                         10

19                         10

20                         10

21                         10

21A                    10

Amount of compensation

22                         10

23                         10

24                         10

Levies on banks

25                         10

25A                    10

25B                     11

25C                     11

26                         11

27                         11

28                         11

29                         11

30                         11

31                         11

32                         11

Subrogation

33                         11

34                         11

Appeals

35                         11

Information

35A                    11

35B                     11

final PROVISIONS  12

35C                     12

36                         12

Table of Legislation History. 13

Table of Renumbered Provisions. 13

Table of Endnote References. 13

 

 

Banking Business (Depositors Compensation) (Jersey) Regulations 2009

part 1

interpretation

1        Interpretation[1]

In these Regulations, unless the context otherwise requires –

“administrator”, in respect of a bank in default, means the person for the time being charged with the administration of the bank’s property;

“annual administration levy” has the meaning given by Regulation 25 and includes any additional levy a bank is required to pay under Regulation 25B(5) in relation to such a levy;

“Appointments Commission” means the Commission established under Article 17 of the Employment of States of Jersey Employees (Jersey) Law 2005;

“bank” means a person registered under the Banking Law;

“bank depositors compensation scheme” or “scheme” means the scheme established by Part 3;

“bank in default” means a bank that has become bankrupt;

“Banking Law” means the Banking Business (Jersey) Law 1991;

“bankrupt”, in respect of a bank, includes the winding up of an insolvent bank pursuant to Article 155 of the Companies (Jersey) Law 1991;

“become bankrupt”, in respect of a bank, includes becoming bankrupt, or a state equivalent or similar to becoming bankrupt, under the law of a jurisdiction outside Jersey;

“Board” means the Jersey Bank Depositors Compensation Board established by Regulation 8;

“charity” means a corporation, association or trust, the income from the property of which is exempt from income tax by virtue of Article 115(a) or (aa) of the Income Tax (Jersey) Law 1961;

“child”, in respect of an eligible depositor, means a person who has not attained the age of 18;

“Commission” means the Jersey Financial Services Commission established by the Financial Services Commission (Jersey) Law 1998;

“compensation” means compensation payable under the bank depositors compensation scheme;

“compensation fund” means a fund established under Regulation 17;

“compensation levy” means a levy that a bank is liable to pay under Regulation 25A and includes any additional levy the bank is required to pay under Regulation 25B(5) in relation to such a levy;

“default-related administrative costs” has the meaning given by Regulation 17(4);

“eligible deposit”, in respect of a bank, means a deposit held by the bank in an account in Jersey in respect of an eligible depositor;

“eligible depositor” has the meaning given to that expression by Regulation 5;

“financial year” has the meaning given to that expression by Article 1 of the Public Finances (Jersey) Law 2019;

“function” includes a power and a duty;

“recurring administrative costs” means any costs of the Board that are neither compensation nor default-related administrative costs, but does not include any repayment under Regulation 32(2) or payment under Regulation 33(3);

“relevant date”, in respect of a bank in default, means the date specified in a notice published by the Board in respect of the bank under Regulation 15(1) and any reference to a situation as at a relevant date is a reference to the situation at the start of the day that falls on that date;

“valid application” has the meaning given to that expression by Regulation 2;

“working day” means any day other than a Saturday, a Sunday, Christmas Day or Good Friday or a day that is a bank holiday or a public holiday under the Public Holidays and Bank Holidays (Jersey) Law 1951.

2        [2]

3        [3]

4        [4]

5        [5]

6        [6]

7        [7]

part 2

The Jersey Bank Depositors Compensation Board

8        Jersey Bank Depositors Compensation Board

(1)     There is established a Board, called the Jersey Bank Depositors Compensation Board.[8]

(2)     The Board is an incorporated body that may, in its own name –

(a)     sue and be sued;

(b)     enter into contracts; and

(c)     acquire, hold and dispose of property of any type.

(3)     The Board may, in so far as it is possible for an incorporated body to do so –

(a)     exercise the rights, powers and privileges; and

(b)     incur the liabilities and obligations,

of a natural person of full age and capacity.

8AA   Continuation of the Board[9]

The Board continues in existence until the date on which Regulation 14 ceases to be in force, for the purpose of enabling the Board to fulfil its functions under Regulations 8A and 14.

8A     Continuing functions of the Board[10]

(1)     For the period that the Board continues in existence, the function of the Board is to exercise its functions under Regulation 14 in relation to the final reporting period.

(2)     In the exercise of those functions, the Board must ensure that –

(a)     the Board is administered in a prudent and economical manner; and

(b)     the resources of the Board are used efficiently and effectively.

(3)     The Board may do anything reasonably necessary or expedient for or incidental to those functions, and may in particular, in the exercise of those functions, appoint an employee, agent or contractor to assist it in exercising those functions.

9        Independence of Board

(1)     The Board is independent of the Minister and of the States.

(2)     Accordingly, neither a Minister nor the States are liable for –

(a)     an act or an omission of the Board; or

(b)     a debt or other obligation of the Board.

10      Constitution of the Board

(1)     The Board must have at least 3 members.

(2)     The members of the Board shall be appointed by the Minister after consulting with the Appointments Commission.[11]

(2A)   Article 2 of the States of Jersey (Appointment Procedures) (Jersey) Law 2018 shall apply to the appointment of members of the Board.[12]

(3)     A person shall not be eligible for appointment as a member of the Board if the person is –

(a)     a member of the States;

(b)     subject to a disqualification order under Article 78 of the Companies (Jersey) Law 1991 or Article 24(7) of the Bankruptcy (Désastre) (Jersey) Law 1990; or

(c)     bankrupt.

(4)     The appointment of a person as a member of the Board ceases if the person becomes a person who may not be appointed to be a member of the Board.

(5)     The rights and obligations of the Board, and the performance of its functions, shall not be affected by –

(a)     any vacancy in its membership; or

(b)     any defect in the appointment of a member.

(6)     [13]

(7)     [14]

11      Terms and conditions of appointment of members of the Board

(1)     A person appointed to be a member of the Board –

(a)     holds the appointment on terms and conditions agreed between the person and the Minister; and

(b)     may be reappointed.

(2)     The terms and conditions must include terms and conditions in respect of –

(a)     the term of the appointment of the member, being a term not exceeding 5 years;

(b)     the manner in which the member may resign during that term;

(c)     the grounds upon which the appointment of the member may be terminated during that term;

(d)     the remuneration (if any) of the member,

and may contain such other terms and conditions as the Minister may consider appropriate or necessary.

(3)     The grounds mentioned in paragraph (2)(c) must include –

(a)     the member being mentally or physically incapable of carrying out his or her functions as a member; and

(b)     the member being convicted of an offence that carries a penalty of imprisonment for a term of 2 years or longer.

12      Procedures of the Board

(1)     The quorum for a meeting of the Board is half the number of members appointed to be members of the Board at the time of the meeting.

(2)     The Board must keep a record of its decisions.

(3)     The Minister may determine the procedures of the Board.

(4)     The Minister must present to the States a copy of any determination made under paragraph (3).

(5)     Except as otherwise provided by this Regulation or the Minister, the Board may determine its own procedures.

(6)     [15]

13      Limitation of liability

(1)     This Regulation applies to –

(a)     the States;

(b)     a Minister;

(c)     the Board;

(d)     a member of the Board;

(e)     a person appointed under Regulation 8A(3)(e); and

(f)      a person who is carrying out a function of the Board.[16]

(2)     A body or person to whom this Regulation applies shall not be liable in damages for anything done or omitted to be done in the discharge or purported discharge of a function under these Regulations.

(3)     Paragraph (2) does not apply if it is shown that the act or omission was in bad faith.

(4)     Nor does it apply in the case of a body acting as a public authority for the purposes of the Article 7 of the Human Rights (Jersey) Law 2000, so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of Article 7(1) of the Human Rights (Jersey) Law 2000.

14      Accounts and report

(1)     This Regulation applies if during the final reporting period the Board receives, holds or expends money.[17]

(2)     The Board must keep accounts prepared in accordance with generally accepted accounting principles that show a true and fair view –

(a)     of the profit or loss of the Board for the final reporting period; and

(b)     of the state of the Board’s affairs at the end of the final reporting period.[18]

(2A)   The Board’s accounts must deal with each compensation fund separately –

(a)     from any other compensation fund in respect of another bank in default; and

(b)     from any other money received, held or expended by the Board.[19]

(3)     The Board must, within 3 months after the end of the final reporting period, have its accounts audited by an auditor qualified for appointment as an auditor of a company by virtue of Article 113 of the Companies (Jersey) Law 1991.[20]

(4)     The Board must, within 3 months after its accounts have been audited, provide the Minister with –

(a)     its audited accounts; and

(b)     a report.

(5)     The report must contain –

(a)     details of the Board’s activities during the final reporting period; and

(b)     such other information as the Minister may direct the Board to provide.[21]

(6)     The Minister must lay the accounts and report before the States as soon as practicable after receiving them.

(7)     The Board must keep records that permit its financial position to be ascertained with reasonable accuracy at any time.

(8)     The Comptroller and Auditor General may audit the accounts of the Board.

(9)     When requested to do so by the Comptroller and Auditor General the Board must make its records and accounts available to the Comptroller and Auditor General.

(10)    [22]

(11)    In this Regulation, “final reporting period” means the period beginning on 1 January 2025 and ending on a date specified by Order of the Minister for External Relations under Article 51 of the Banking Business (Jersey) Law 1991.[23]

part 3

The BANK DEPOSITORS COMPENSATION scheme

Obligations of the Board

15      [24]

16      [25]

17      [26]

18      [27]

19      [28]

20      [29]

21      [30]

21A   [31]

Amount of compensation

22      [32]

23      [33]

24      [34]

Levies on banks[35]

25      [36]

25A   [37]

25B   [38]

25C    [39]

26      [40]

27      [41]

28      [42]

29      [43]

30      [44]

31      [45]

32      [46]

Subrogation

33      [47]

34      [48]

Appeals

35      [49]

Information[50]

35A   [51]

35B   [52]

part 4

final PROVISIONS[53]

35C    [54]

36      [55]

 

Endnotes

Table of Legislation History

◦Projets available at statesassembly.gov.je

Table of Renumbered Provisions

Table of Endnote References