Depositors Compensation Scheme
When did it come into force?
The Banking Business [Depositors Compensation] [Jersey] Regulations 2009 came into force on the 6th November 2009.
What is it?
The Regulations establish a Deposit Compensation Scheme [DCS] which will provide depositors with compensation in the event that a Jersey registered bank should fail. The DCS would provide full protection for private individuals up to a maximum of £50,000 per person, per Jersey banking group, whether or not the depositor is resident in Jersey. It will deliver protection to individuals holding joint accounts, the £50,000 limit will apply per person, so a £100,000 deposit held by two people would be completely covered.
Up to the first £5,000 of a valid claim should be paid within 7 working days, with the balance being paid within 3 months.
The DCS is operated by a Board that will is independent of the Government of Jersey and the Jersey Financial Services Commission.
More information on the scheme can be found here.