191Interpretation in this Part

1. In this Part, unless the context otherwise requires,—

   eligible depositor—

   1. means a holder of a protected deposit or a person on whose behalf a protected deposit is held (whether or not the debt security was issued to, or subsequently acquired by, the holder of the security); but
   2. does not include any of the following:
      1. a licensed deposit taker, a licensed insurer, or an operator of a designated FMI:
      2. a bank or other entity that is licensed, registered, or otherwise authorised to accept deposits under the law of an overseas jurisdiction:
      3. a government agency:
      4. in relation to a specified event notice issued in relation to a licensed deposit taker (B),—
         1. an associated person of B; or
         2. a director of B:
      5. a person of a class that is prescribed by the regulations

   fund means the Depositor Compensation Fund established under section 196

   government agency means any of the following:

   1. the Crown (as defined in section 2(1) of the Public Finance Act 1989):
   2. an Office of Parliament (as defined in section 2(1) of the Public Finance Act 1989):
   3. a Crown entity under section 7(1)(a) to (c) of the Crown Entities Act 2004:
   4. a local authority (as defined in section 5(1) of the Local Government Act 2002):
   5. a State enterprise (as defined in section 2 of the State-Owned Enterprises Act 1986):
   6. the Bank or a subsidiary of the Bank:
   7. a company or other organisation named or described in Schedule 4 or 4A of the Public Finance Act 1989:
   8. the Board of Trustees of the National Provident Fund continued under the National Provident Fund Restructuring Act 1990 (and any company appointed under clause 3(1)(b) of Schedule 4 of that Act)

   person—

   1. has the same meaning as in section 13 of the Legislation Act 2019; and
   2. includes—
      1. a partnership under the Partnership Law Act 2019 (see section 207); and
      2. in the case of a trust to which section 209 applies that has only 1 trustee, the trustee acting in their capacity as trustee; and
      3. in the case of a trust to which section 209 applies that has more than 1 trustee, the trustees acting jointly in their capacity as trustees

   quantification time, in relation to a specified event notice, means the time specified in the notice under section 194(3)

   relevant arrangement has the meaning set out in subsection (2)

   resolution measure has the meaning set out in section 230(3)

   scheme means the depositor compensation scheme established by this Part

   specified event notice means a notice issued under section 194

   statement of funding approach means the statement of funding approach published under subpart 7.

2. A protected deposit is held under a relevant arrangement if the deposit—

3. is held under a regulated client money or property service (within the meaning of section 431W of the FMCA); or
4. is held under a trust, a scheme, or other arrangement of a kind that is prescribed by the regulations.

5. In this Part, a protected deposit must be treated as being held for, or on behalf of, 1 or more persons if—

6. a trust, a scheme, or other arrangement of a particular kind is prescribed by the regulations for the purposes of subsection (2)(b); and
7. the regulations declare that a deposit held under a trust, scheme, or arrangement of that kind must be treated as being held for, or on behalf of, those persons.

Example

A managed investment scheme that is managed by a bank (A) is a multi-rate PIE (as defined in section YA 1 of the Income Tax Act 2007). The scheme only invests in protected deposits issued by A. An investor who holds interests in the scheme may use their investment in a similar way to a normal term deposit or call deposit.

If the regulations prescribe schemes of that kind for the purposes of subsection (2)(b), the regulations may also declare that the protected deposits are to be treated as being held for, or on behalf of, the investors who hold interests in the scheme.