Changes from report parliamentary committee draft to plenary report

Added(ii) point (c) is replaced by the following:

Added‘(c) deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering and terrorist financing;’;

Added▌

Added(iv) point (f) is replaced by the following:

Added‘(f) deposits the holder of which has never been identified pursuant to Article 16 of Regulation (EU) …. [please insert short reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final], where those deposits have become unavailable, except where a holder requests payout and proves that the lack of identification was not caused by his or her action;’;

Added(v) point (j) is deleted;

Added(va) the following point is added:

Added‘(ka) deposits by persons or legal entities subject to targeted financial sanctions adopted by the Union.’;

Added(b) paragraph 2 is replaced by the following:

Added‘2. By way of derogation from paragraph 1, point (i), Member States may decide that deposits held by personal pension schemes and occupational pension schemes of small or medium-sized enterprises are included up to the coverage level laid down in Article 6(1).’;

Added(5) Article 6 is amended as follows:

Added(a) paragraph 2 is amended as follows:

Added(i) the introductory wording is replaced by the following:

Added‘In addition to paragraph 1, Member States shall ensure that the following deposits are protected as a minimum to an amount of EUR 500 000 and a maximum of EUR 2 500 000 for 6 months after that amount has been credited or from the moment when such deposits become legally transferable:’;

Added(ii) point (a) is replaced by the following:

Added‘(a) deposits resulting from real estate transactions relating to private residential properties and deposits intended for such transactions, provided that those transactions are concluded in a four-month period by a natural person, and provided that that natural person can provide documents proving such transaction;’;

Added(iia) the following subparagraph is added:

Added‘By ... [36 months from the date of entry into force of this amending Directive], the Commission shall carry out a review of the amounts which are protected as referred to in the first subparagraph and as transposed by Member States, with a view to determining whether the maximum amount referred to in that subparagraph should be reduced, taking into account whether the amounts which are protected are proportionate and ensure a level playing field across the Union. The Commission shall submit a report to the European Parliament and to the Council, accompanied, where appropriate, by a legislative proposal.’;

Added(b) the following paragraph 2a is inserted:

Added‘2a. Member States shall ensure that the coverage level laid down in paragraph 2 supplements the coverage level laid down in paragraph 1.’

Added(6) Article 7 is amended as follows:

Added(a) paragraph 5 is deleted;

Added(aa) paragraph 6 is replaced by the following:

Added‘6. Member States shall ensure that credit institutions report to their DGSs, at least annually, the aggregated amount of eligible deposits. Member States shall ensure that DGSs may at any time request credit institutions to inform them about the aggregated amount of eligible deposits of every depositor.’;

Added(b) paragraph 7 is replaced by the following:

Added‘7. Member States shall ensure that the DGS reimburses interest on deposits which has accrued until, but has not been credited or debited at, the date on which a relevant administrative authority makes a determination as referred to in Article 2(1), point (8)(a), or a judicial authority makes a ruling as referred to in Article 2(1), point (8)(b). The coverage level laid down in Article 6(1) or, in the circumstances referred to in Article 6(2), the coverage level laid down in that paragraph, shall not be exceeded.

AddedWhere interest rates on certain deposits significantly exceed the prevailing market interest rate, as determined and based on transparent and publicly available data, the DGS shall have the power to adjust the reimbursed interest to reflect the prevailing market interest rate at the time of the determination made by the relevant administrative authority or of the ruling made by the judicial authority. That adjustment shall be made to prevent moral hazard. The criteria and methodology for defining ‘significantly exceed’ and for the adjustment shall be established in a transparent manner, in accordance with guidelines developed by EBA and subject to the approval of the competent authority.’;

Added(7) the following Article 7a is inserted:

Added‘Article 7a

AddedBurden of proof for deposit eligibility and entitlement

AddedMember States shall ensure that in the cases referred to in Article 6(2) and Article 7(3) a depositor or, where appropriate, an account holder, proves either that the deposits concerned meet the conditions of Article 6(2), or the entitlement to the deposits in the circumstances referred to in Article 7(3).’;

Added(8) Article 8 is amended as follows:

Added(-a) paragraph 1 is replaced by the following:

Added‘1. DGSs shall ensure that the repayable amount is available as soon as possible and in any event within seven working days of the date on which a relevant administrative authority makes a determination as referred to in Article 2(1), point (8)(a), or a judicial authority makes a ruling as referred to in Article 2(1), point (8)(b).’;

Added(-aa) paragraph 2 is deleted;

Added(a) paragraph 3 is replaced by the following:

Added‘3. By way of derogation from paragraph 1, Member States shall allow DGSs to apply a longer ▌period for repaying the deposits referred to in Article 6(2), Article 7(3) and Article 8b, which shall not exceed 20 working days from the date on which those DGSs received the complete documentation they requested from a depositor or, where appropriate, an account holder, to examine the claims and verify that the conditions for repayment are met. For the deposits referred to in Article 6(2) and Article 7(3), where DGSs are not able to make the repayable amount available in less than seven working days, they shall ensure that depositors have access to an appropriate amount of their covered deposits to cover the cost of living within five working days of making a request for that amount.’;

Added(aa) paragraph 4 is deleted;

Added(b) paragraph 5 is amended as follows:

Added(i) point (c) is replaced by the following:

Added‘(c) by way of derogation from paragraph 9, there has been no transaction relating to the deposit during the last 24 months (the account is dormant), except where a depositor also has deposits on another account that is not dormant’;

Added(ii) point (d) is deleted;

Added(c) paragraph 8 is deleted;

Added(d) paragraph 9 is replaced by the following:

Added‘9. Member States shall ensure that where there has been no transaction relating to the deposit during the last 24 months, DGSs may set a threshold concerning the administrative costs that would be incurred by those DGSs in making such a repayment. DGSs shall not be obliged to take active steps to repay depositors below that threshold. Member States shall ensure that DGSs repay depositors below that threshold where so requested by those depositors.’;

Added(9) the following Articles 8a, 8b and 8c are inserted:

Added‘Article 8a

AddedRepayment of deposits exceeding EUR 10 000

AddedMember States shall ensure that when amounts to be reimbursed exceed EUR 10 000, DGSs shall reimburse depositors via credit transfers as defined in Article 2, point (20), of Directive 2014/92/EU of the European Parliament and of the Council*.

Added‘Article 8b

AddedCoverage of client funds deposits

Added1. Member States shall ensure that client funds deposits are covered by the DGSs where all of the following applies:

Added(a) such deposits are placed on behalf and exclusively for the account of clients who are eligible for protection in accordance with Article 5(1);

Added(b) such deposits are made to segregate client funds in compliance with safeguarding requirements laid down in Union law regulating the activities of the entities referred to in Article 5(1), point (d);

Added(c) the clients referred to in point (a) are identified or identifiable, under the ultimate responsibility of the entity holding the account on behalf of clients, prior to the date on which a relevant administrative authority makes a determination as referred to in Article 2(1), point (8)(a) or a judicial authority makes a ruling as referred to in Article 2(1), point (8)(b).

Added2. Member States shall ensure that the coverage level referred to in Article 6(1) applies to each of the clients that meet the conditions laid down in paragraph 1, point (c), of this Article. By way of derogation from Article 7(1), when determining the repayable amount for an individual client, the DGS shall not take into account the aggregate fund deposits placed by that client with the same credit institution.

Added3. Member States shall ensure that DGSs repayments of covered deposits is made ▌to the client directly.

Added4. The EBA shall develop draft regulatory technical standards to specify:

Added(a) the technical details related to the identification of clients for the repayment in accordance with Article 8;

Added▌