5.1 Should orphaned accounts (i.e. no name or address is held for an account with a positive balance) be included within the “Not Active” file C or under a “Dummy” customer as Category B in the SCV file?
- The Deposit Guarantee Scheme Directive 94/Article 7 states: ‘Member States may provide that certain depositors or deposits shall be excluded from guarantee or shall be granted a lower level of guarantee. Those exclusions are listed in Annex I’ –one of the exclusions listed in Annex 1 is non-nominative deposits (accounts which have no name) and this exclusion has been transposed into COMP.
- Therefore accounts with no name are excluded from eligibility for compensation by FSCS.
- For accounts with no address the FSCS anticipates that the SCV record would be included in the SCV file with a key or a code that indicates it is not fit for straight through payout.
5.2 What does ‘not active’ as defined by COMP 17.2.3R (2) actually mean?
An account is not active if it:
- is a dormant account as defined in the Dormant Bank and Building Society Accounts Act 2008; or
- is an account for which the firm has received formal notice of a legal dispute or competing claims to the proceeds of the account; or
- the depositor appears on the ‘Consolidated list of financial sanctions targets in the United Kingdom’ that is maintained by HM Treasury.