The CSSF-CPDI (the Council for the Protection of Depositors and Investors) published a circular with the aim to carry out a survey on deposits, particularly on covered deposits, as held by credit institutions incorporated under the Luxembourg law, the POST Luxembourg for its provision of postal financial services, and the Luxembourg branches of credit institutions that have their head office in a third country as at June 30, 2019. The circular has been issued to the members of the Luxembourg deposit guarantee fund (FGDL).
The circular states that the data collection is done on a quarterly basis to identify, throughout the year, trends and changes in indicators relevant to the deposit guarantee. FGDL members are requested to provide data at the level of their legal entity, comprising branches located within other member states, by July 31, 2019. To transmit the data, institutions are being requested to complete the table attached to the circular.
A definition of “covered deposits” and “eligible deposits” can be found in Article 163 of the amended law of December 18, 2015 on the failure of credit institutions and certain investment firms. The circular mentions that persons who are absolutely entitled shall be covered by the guarantee, provided that they have been identified or are identifiable before the guarantee is triggered. Persons are deemed identifiable if the holder of the account has informed the FGDL member institution that holds the deposits, that he acts on behalf of third parties, that he has communicated the number of persons who are absolutely entitled and the amount owed to each of them, and that he is able to provide the institution that holds the deposits or the CPDI with the identity of the persons who are absolutely entitled, upon request of the CPDI in case of the institutions’ failure. To allow the CPDI to follow the use of omnibus or fiduciary accounts and prepare the FGDL for their reimbursement, the volume of eligible and covered deposits in such accounts and the number of persons who are absolutely entitled are to be reported through specific rows in the annexed table.
Related Link: Circular (PDF)
Keywords: Europe, Luxembourg, Banking, Covered Deposits, Deposit Guarantee Fund, Data Collection, FGDL, CPDI, CSSF
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