Conseil de protection des déposants et des investisseurs (CPDI, Council for the Protection of Depositors and Investors)
The internal body of the CSSF in charge of the administration of the Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) and the Système d’indemnisation des investisseurs Luxembourg (SIIL, Investor Compensation Scheme Luxembourg). The CPDI is the designated authority within the meaning of Article 2(1)(18) of Directive 2014/49/EU. As regards these missions, as well as for judicial and out-of-court representation in matters relating to these missions, the CPDI will be the higher executive authority of the CSSF and not the Executive Board.
The holder or, in the case of a joint account, each co-holder of a deposit. Where the depositor is not the beneficial owner of the sums deposited in an account, the person entitled thereto shall be assimilated to the depositor, provided that the person has been identified or is identifiable.
The notion of this term as defined in Article 163, point 6, of the Law of 18 December 2015, as amended, includes current accounts, sight or term savings accounts and certain certificates of deposit issued before 2 July 2014. Each bank must inform its customers of the eligibility of the products it offers. Normally, the statement of account of accounts eligible for the guarantee shall bear a reference to the FGDL. Deposits, which are liabilities on the balance sheet of a bank, rank high in the credit hierarchy. For example, the portion of deposits in excess of EUR 100,000 of natural persons and micro, small and medium-sized enterprises enjoy a priority ranking immediately following the privilege referred to in Article 2101(1)(4) Civil Code.
Temporary high balances
In accordance with Article 171(2) of the Law of 18 December 2015, as amended, the protection of the following deposits may exceed an amount of EUR 100,000 but cannot exceed an amount of EUR 2,500,000 for twelve months after the amount has been credited or from the moment when such deposits become legally transferable (i) deposits resulting from real estate transactions relating to private residential properties, as well as compensations received following claims incurred in respect of a private residential property; (ii) deposits that serve social purposes and are linked to particular life events of a depositor such as marriage, divorce, retirement, dismissal, redundancy, invalidity or death; (iii) deposits that are based on the payment of insurance benefits or compensation for criminal injuries or wrongful conviction.
Unavailability of deposits
In accordance with Article 170 of the Law of 18 December 2015, as amended, a deposit shall be unavailable when it is due and payable but has not been paid by a member institution under the legal or contractual conditions applicable thereto, where either (i) the CSSF has determined that in its view the member institution concerned appears to be unable for the time being, for reasons which are directly related to its financial circumstances, to repay the deposit and the institution has no current prospect of being able to do so; or (ii) the Tribunal d’arrondissement de Luxembourg (District Court) sitting in commercial matter has ordered the suspension of payments or winding up of the member institution, for reasons which are directly related to the member institution’s financial circumstances.
Deposit guarantee scheme
Deposit guarantee schemes reimburse a limited amount of deposits to depositors whose bank has failed. From the point of view of depositors, it invalues protecting part of their wealth from the bankruptcy of a bank. From a financial stability point of view, the aim is to prevent bank runs and hence to prevent severe economic consequences. The Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) is the Luxembourg recognised deposit guarantee scheme.
Système d’indemnisation des investisseurs
An investor compensation scheme protects investors who use investment services by providing for compensation in cases where a credit institution or investment firm is unable to repay the financial instruments (securities, option contracts, etc.) and funds belonging to an investor. The Système d’indemnisation des investisseurs Luxembourg (SIIL, Investor Compensation Scheme Luxembourg) is the Luxembourg recognised investor-compensation scheme.
Single Customer View
The Single Customer View is a technical file which allows the creation of a single and consistent overview of the aggregated deposits of a credit institution on a client by client basis in order to determine its coverage by the deposit guarantee. Circular CSSF 13/555 defines the format of the Single Customer View which has to be respected by the FGDL members.