The key features of the Scheme are:
- It came into force on 26 November 2008.
- It covers all 'qualifying deposits' (mainly those from personal retail depositors, wherever they live).
- In the event of the default of a Guernsey Bank, it provides compensation of up to £50,000 per qualifying depositer in respect of that bank.
- It aims to pay compensation within three months of a bank failure.
- It is operated by an independent statutory Board which is separate from both the Guernsey Financial Services Commission and the States of Guernsey.
- The maximum total amount of compensation is capped at £100 million in any 5 year period. If claims exceed this cap, compensation will be reduced pro rata. The cap also means that compensation in respect of any one bank cannot exceed £100 million.
- It will be paid for by the Guernsey Banks through annual charges and special charges in the event of a bank default.
This is only a summary; for further information you should read the Scheme Leaflet, which includes a ‘frequently asked questions’ section, or look at the Legislation and Other Documents on the website for a detailed understanding of how the Scheme works. Clients should contact their bank to establish what level of protection they can expect under the Scheme.