Information on Deposit Guarantee and Investor Compensation Scheme
Version September 2015
Due to the EU directives, implemented in Austria by the Austrian Act on Deposit Guarantee and Investor Compensation Schemes (ESAEG) and by the Austrian Banking Act (BWG), each financial institution that accepts deposits and respectively offers investment services is obliged by law to be a member of a deposit guarantee scheme.
As an Austrian bank, DenizBank AG is without restriction subject to the Austrian regulations on deposit guarantees and investor compensations (ESAEG and BWG). DenizBank AG is a member of the deposit guarantee scheme for banks and bankers (Einlagensicherung der Banken & Bankiers Gesellschaft m.b.H.)
Deposits of natural and legal persons are guaranteed up to maximum amount of € 100,000 per depositor. For certain special conditions, such as "temporary limited covered deposits" (e.g. deposits from real estate transactions relating to private residential properties; payments of guarantee benefits or compensation for criminal offenses; payments which fulfill the statutory purposes - more detailed information can be found on the website of the Deposit Guarantee Protection, www.einlagensicherung.at ) a request can be made within 12 months after the guarantee claim application at the guarantee scheme that the deposit is to be reimbursed up to an amount of EUR 500,000.00.
The deposit guarantee is valid for each customer (depositor), not per account. In the case of a jointly managed account, each (legitimated) account holder is therefore entitled to compensation. In principle, the assignment of the balances of the joint account is based on 1:1 allocation. However, it is free to the account holders to hand over a written regulation to the credit institute before the admission of guarantee claim, which deviates from the 1: 1 allocation. In the event of occurrence of an guarantee claim, then the selected allocation key should be used for the assignment.
Deposits of an account owned by two or more persons, who are shareholders of a general partnership, (Offene Gesellschaft), a limited partnership (Kommanditgesellschaft) a civil law association (Gesellschaft bürgerlichen Rechts) or of any of these types of companies from an EU member state or a third country, will be aggregated for the purpose of calculation of the maximum amount and treated as one single depositor. This also applies to balances and other receivables from securities transactions.
Investor Compensation Scheme
According to Austrian law, in the event of insolvency of the custodian bank, securities shall be returned to the investors by the credit institution concerned. As the securities are only deposited by the custodian bank, the customer, as the owner of the securities in insolvency proceedings, can file a request for segregation of the securities.
Any monetary claims arising under the investor compensation scheme are guaranteed up to maximum amount of EUR 20,000, both for natural persons and legal persons. However, the compensation scheme’s cover obligation for claims of creditors, which are not natural persons, is limited to 90% of the claim from securities per investor.
Difference between Deposit Insurance and Investor Compensation
In normal case all types of deposits / balances credited to bank accounts and saving books (e.g. salary accounts, savings accounts, time deposits etc.),are subject of the Deposit Guarantee.
Returns from securities settlement (dividends, sales revenues, coupon payments, repayments, etc.) are protected as deposit of a customer account within the framework of the Deposit Guarantee up to a maximum amount of EUR 100,000.00. In particular, the Investor Compensations are subject to the following demands of the investor against the credit institution:
- Administration and custody of securities (custody business)
- Trade of the credit institution with financial market instruments;
- Different Payment Deadlines
In case of Investor Compensation – within 3 months, in case of Deposit Guarantee − within 20 working days (until 31st of December 2018); within 15 working days (from 1st of January 2019 until 31st of December 2020); within 10 working days (from 1st of January 2021 until 31st of December 2023) and 7 working days (as of 1st of January 2024).
In the event of the guarantee claim, the guarantee scheme shall refund the covered deposit without the need of an application by the investor (exception: investor compensation and temporarily limited covered deposits acc. to Art. 12 of ESAEG ).
Exceptions to Deposit Insurance
The exceptions from the deposit guarantee are stated in simplified form below. The statutory provisions acc. to Art. 10 para. 1 of ESAEG apply.
Not covered are:
Debt securities of credit institution (e.g. loans for residential purposes (Wohnbank-Anleihen), medium-term bonds, mortgage bonds, etc.). In case of bankruptcy of the issuing bank, you will be served in accordance with the terms and conditions (e.g. primarily from separated cover assets such as covered bonds or with the dividends in bankruptcy or subordinately after satisfaction of the other creditors).
Own capital components of the bank.
Deposits, for which the identity of the holder by the occurrence of protection claim has never been identified , unless the holder takes such action within 12 months after the occurrence of a deposit guarantee case.
Deposits connected with money laundering in any form.
Deposits from credit institutions or financial institutions or investment companies and institutional investors such as insurance companies, investment companies (funds), pension and retirement funds (“Pensions- and Vorsorgekassen”).
Deposits of federal, state and local as well as comparable foreign authorities.
Exclusions from the Investor Compensation Scheme
The exceptions from investor compensation are stated in simplified form below. The statutory provisions acc. to Art. 47 para. 2 of ESAEG apply.
Not covered are:
- Claims not denominated in Euros, Schilling, ECU or any other currency of an EEA Member State. With the exception of claims from securities transactions in financial instruments in accordance with § 1 no. 7 WAG 2018
- Claims of companies which qualify as large companies (große Kapitalgesellschaften) according to Art. 221 para. 3 of the Austrian Commercial Code (UGB).
- Claims, for which the identity of the holder by the occurrence of protection claim has never been identified ,unless the holder takes such action within 12 months after the occurrence of a protection claim.
- Claims in connection with money laundering in any form.
- Claims of Austrian federal government, provinces and municipalities and of comparable foreign territorial authorities.
- Claims of persons close related to the credit institution, such as members of the board, the supervisory board, personally liable partners , auditors of the bank and persons holding at least 5% of the bank's capital, even if those persons hold offices in affiliated companies of the bank (except where minor stakes are concerned).In addition, close relatives of bank related parties and third parties are excluded from the guarantee, if these close relatives or third parties act on behalf of bank related persons.
We refer to the legal provisions of ESAEG and BWG on deposit guarantee and investor compensation schemes, which we will be pleased to provide you upon request.
For more information please refer to the “Information Sheet for the Depositor”:
- Download: Information Sheet for the Depositor