Regulation 3
Financial penalty
of Deposit Insurance and Policy Owners’ Protection Schemes (Financial Penalty) Order 2024
For the purposes of section 8(4) of the Act, the prescribed formula for the financial penalty (F) that a DI Scheme member is liable to pay for every day or part of a day that the DI Scheme member fails to comply with the asset maintenance requirement, is —where —
A is the deficiency in the amount of assets necessary for the DI Scheme member to comply with the asset maintenance requirement; and
r is 10 percentage points above the 3‑month compounded SORA for —
the day on which the bank fails to comply with the asset maintenance requirement — if that day is a business day; or
the last business day immediately before the day on which the bank fails to comply with the asset maintenance requirement — if that day is not a business day.