Depositor Compensation Scheme

Riesant Bank plc is a credit institution licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371) and is a member of the Depositor Compensation Scheme. The Scheme is the deposit guarantee scheme for Malta, established under the Depositor Compensation Scheme Regulations, which transpose the European Union Deposit Guarantee Schemes Directive into Maltese law.

The Scheme exists to protect depositors in the event that a Maltese-licensed credit institution is unable to meet its obligations and is determined to be in default. It is managed by a Management Committee appointed by the Malta Financial Services Authority and is funded by contributions from member institutions, including Riesant. No application or registration is required of you; protection is automatic for eligible deposits.

Eligible deposits are protected up to a limit of €100,000 per depositor, per institution. This is the standard coverage level applied across the European Union. The limit applies to the aggregate of your eligible deposits held with Riesant, not to each individual account, so balances across several accounts in your name are added together before the limit is applied.

Where deposits are held in a currency other than euro, compensation is calculated and paid in euro, with any conversion made at the reference exchange rate prevailing on the date the institution is determined to be in default.

The Scheme covers eligible deposits held with Riesant, including balances in current accounts, savings accounts and fixed-term deposits, together with accrued interest up to the date of default, subject to the overall €100,000 limit. Deposits held by private individuals and by most companies are generally eligible.

Cover extends to deposits held by clients across the EU and EEA countries that Riesant serves, provided the deposit is held with the bank in Malta. Eligibility is determined by the status of the depositor and the nature of the deposit rather than by the depositor's country of residence.

Certain deposits and holdings fall outside the Scheme. These include deposits held by other credit institutions on their own account, deposits arising from transactions in connection with which a money-laundering conviction has been obtained, and deposits by financial institutions, investment firms, insurance and reinsurance undertakings, and collective investment schemes.

Investments are not deposits and are not protected by the Depositor Compensation Scheme. Securities, funds, structured products and other investment holdings managed through Riesant are held subject to separate client-asset protections under the Investment Services Act (Cap. 370) and, where relevant, the Investor Compensation Scheme, which operates independently of the Depositor Compensation Scheme and carries a different limit.

Where an account is held jointly by two or more people, each depositor's share is treated separately for the purpose of the €100,000 limit. In the absence of any contrary arrangement, the balance is divided equally between the account holders, and each holder's share is added to any other eligible deposits held by that person in their own name with Riesant before the limit is applied.

This means a joint account held by two eligible depositors can, in effect, attract protection of up to €200,000 in respect of that account, being €100,000 for each holder's share, subject always to the aggregation of each person's other deposits with the bank.

In addition to the standard €100,000 limit, the Scheme provides protection for certain temporary high balances. Where a deposit exceeds the standard limit because it relates to a defined life event, the excess may be protected for a limited period, typically up to six months from the date the amount is credited or from the date the deposit becomes legally transferable.

Qualifying life events include the sale of a private residential property, sums relating to marriage, divorce, retirement, dismissal, redundancy, invalidity or death, the receipt of insurance benefits or compensation for injury or wrongful conviction, and similar one-off circumstances recognised under the regulations. Claims for temporary high balance protection are assessed individually by the Scheme on the basis of supporting evidence.

If Riesant were determined to be in default, you would not need to take any action to start the process. The Scheme identifies eligible depositors from the bank's records and arranges repayment directly, ordinarily without requiring a claim form, although it may request information to verify your entitlement or to assess a temporary high balance.

Repayment of eligible deposits is made within the period set by the Depositor Compensation Scheme Regulations, which provides for payment within seven working days of the date of default. Compensation for temporary high balances and certain other cases that require additional assessment may take longer. Payment is generally made in euro to an account you nominate.

Before you open an account, and at least annually thereafter, Riesant provides the standardised depositor information sheet required under the regulations, which summarises the protection that applies to your deposits. This document forms part of your account terms and should be read alongside this page and the rates page, where any applicable charges and reference rates are set out.

Full details of the Scheme, including the categories of eligible deposit, the treatment of temporary high balances and the repayment process, are published by the Depositor Compensation Scheme in Malta and by the Malta Financial Services Authority. Your relationship manager can also explain how the protection applies to your particular arrangements, though the Scheme itself is the definitive authority on eligibility and payment.