(This note is not part of the Regulations)

These Regulations implement in part Directive 2014/49/EU of the European Parliament and of the Council of 16th April 2014 on deposit guarantee schemes (recast) repealing directive 94/19/EC (OJ L 173 12.6.2014, p.149) ("DGSD").

From 4th July 2015 DGSD repeals and replaces an earlier European directive on deposit guarantee schemes (Directive 94/19/EC of the European Parliament and of the Council on deposit guarantee schemes (OJ L 135, 13.5.1994, p.5) ("DGSD94")).

Whilst these Regulations implement some provisions of DGSD, the remainder are implemented through rules made, and other legally binding requirements imposed, by the Prudential Regulation Authority ("PRA").

Regulation 4 provides that the PRA is the competent authority and the designated authority for the purposes of the DGSD.

Regulation 5 requires the PRA to notify the Financial Services Compensation Scheme ("FSCS") (the "scheme manager") if the PRA becomes aware that a credit institution has financial difficulties which are likely to require the intervention of the scheme manager.

Regulation 6 requires the PRA, or the FSCS in the case of a credit union, if it is satisfied that a credit institution has failed to repay deposits which are due and payable, to make a determination as soon as possible (and in any event within five working days) that the deposits are unavailable.