On 31 March 2023, the Prudential Regulation Authority (PRA) published Policy Statement 2/23: Depositor Protection (PS2/23).
PS2/23 follows an earlier consultation, CP9/22, in which the PRA proposed to amend Rule 6.2 in the Depositor Protection (DP) Part of the PRA Rulebook and make other consequential changes. These amendments sought to clarify that the Financial Services Compensation Scheme (FSCS) depositor protection 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.
Feedback and final rules
In PS2/23 the PRA provides its response to the feedback it received to its consultation and sets out final rules. Following the consultation the PRA reports that it has made minor amendments to the DP rules as consulted. The PRA does not consider that these changes are significantly different to the consultation draft and have been made on its own initiative. CP9/22 contained a number of other proposals that are not the subject of PS2/23 and are not covered by the new rules.
Implementation and next steps
The changes to DP 6.2 and consequential changes to the rules came into effect on 12 March 2023.