5 - What are the main steps of the deposit guarantee compensation procedure?

STEP 1: INITIATION OF THE COMPENSATION PROCEDURE

The FGDR intervenes when a bank or investment firm is no longer able to return the deposits collected or the securities entrusted to it. On the unavailability date, the institution is declared as having failed. The compensation procedure is initiated by the Prudential Supervision and Resolution Authority (ACPR), which then contacts the FGDR to immediately initiate the compensation procedure.

The institution is closed and declared as having failed. Customers no longer have access to their accounts, but they will be compensated within a maximum of 7 working days by the FGDR for their deposit accounts, savings accounts and savings schemes.

 

Life insurance policies are not jeopardised by the bank’s closure because these products are purchased from an insurance company, which has not been declared as having failed. 

 

 

 

STEP 2: PREPARATION OF THE COMPENSATION: ACCOUNT STATEMENT AND TRANSMISSION OF INFORMATION TO THE FGDR.

The institution prepares its customers' account statements and sends this information to the FGDR.

The FGDR calculates each customer's compensation and then prepares a compensation letter for each customer which includes:

  • information about the customer's accounts,
  • the list of covered accounts and excluded accounts,
  •  the compensation calculation,
  •  the non-compensated amounts,
  • the compensation cheque, if applicable,
  • and the "Compensation by the FGDR" information notice.

 

 

STEP 3: AVAILABILITY AND PAYMENT OF COMPENSATION

The FGDR opens a Secure Compensation Area (SCA) on its website to issue compensation to recipients:

  • either by bank transfer, after the customer has entered new bank details, or by cheque sent with acknowledgement of receipt
  • in both cases, the customer receives correspondence that includes a letter and a compensation statement for accounts covered by the deposit guarantee scheme, another for savings accounts subject to the French government guarantee, and an information notice.
  • the maximum compensation period is 7 working days for the deposit guarantee scheme and 3 months for the investor compensation scheme.
  • this period may be extended only in cases where special processing is requested.
  • after receiving their compensation, customers have two months to file a claim with the FGDR for additional compensation for "temporary extraordinary deposits” or to dispute their compensation. The claim must include all relevant supporting documents.​

 

 

STEP 4: HANDLING OF SPECIAL CASES
 
The FGDR continues to process special cases, additional compensation relating to "temporary extraordinary deposits" and any claims until they are completed.

Important note: customers are strongly advised to inform their bank of any changes in their name, postal address, email address or telephone number. This is needed to ensure the quality of the information exchanged between you, your bank and the FGDR in case of compensation.

 

→ To learn more, refer to the "Compensation Procedure" section.