The Jersey Depositors Compensation Scheme

The recent banking crisis has highlighted the fact that Jersey did not in the past have a depositors compensation scheme equivalent to that in the United Kingdom. As a consequence, the States of Jersey are bringing into effect the Banking Business (Depositors Compensation) (Jersey) Regulations (the "Regulations") establishing a new scheme (the "Scheme") designed to provide compensation to any person, whether resident in Jersey or not, who has a bank account in Jersey at a Jersey registered bank which enters bankruptcy. The Regulations are scheduled to be introduced on 14 July 2009.

Who Is Protected?

The Scheme will be available to any "eligible depositor". This is defined in the Regulations as any person who is:-