Terms of Business disclosure: investor compensation and depositor guarantee schemes

Deposits with DBAG are covered by two German protection schemes:

(a)   Entschädigungseinrichtung deutscher Banken GmbH (EdB), the German private commercial bank’s statutory compensation scheme for depositors and investors; and

(b)   Einlagensicherungsfonds des Bundesverbands deutscher Banken e.V. (ESF), the deposit protection scheme of the German private commercial banks.

(a)   EdB

The German Deposit Guarantee Act (Einlagensicherungsgesetz) protects deposits and certain liabilities arising from securities transactions at certain credit institutions to the extent provided for under this Act by the EdB, Burgstraße 28, 10178 Berlin, Germany, www.edb-banken.de.

Private individuals as well as partnerships and corporations are entitled to compensation. Deposits of banks and institutional investors, such as financial institutions and investment firms, insurance undertakings and deposits of public authorities are not covered. The EdB protects deposits up to a limit of €100,000 and 90% of liabilities arising from investment business, limited to the equivalent of €20,000.

Liabilities in respect of which a bank has issued bearer instruments such as bearer bonds and bearer deposit certificates are not protected. Compensation is provided in connection with investment business particularly if, contrary to its duties, a bank is unable to return monies owed to customer in connection with securities transactions and financial instruments owned by the customer and held in custody on its behalf.

(b) ESF

The ESF exists in addition to the EdB. In relation to the protection under the ESF, Client acknowledges the following:

1. Scope of protection: DBAG is a member of the Deposit Protection Fund of the ESF. In accordance with its By-laws – subject to the exceptions provided for therein – the ESF protects deposits, i.e. credit balances which result from funds left in an account or from temporary situations deriving from banking transactions and which DBAG is required to repay under the conditions applicable. Not protected are, inter alia, deposits forming part of the DBAG’s own funds, liabilities from bearer and order bonds, as well as deposits of credit institutions within the meaning of Article 4(1) № 1 CRR, financial institutions within the meaning of Article 4(1) № 26 CRR, investment firms within the meaning of Article 4(1) № 1 MiFID, and central, regional and local authorities. Deposits of creditors other than natural persons and foundations with legal capacity are only protected if (i) the deposit is not a liability from a registered bond or a promissory note and (ii) the term of the deposit does not exceed 18 months. Deposits that already existed before 1 January 2020 shall not be subject to this limitation of term. After 31 December 2019, the ‘grandfathered’ status pursuant to the preceding sentence shall cease to apply as soon as the deposit in question falls due, can be terminated or otherwise reclaimed, or if the deposit is transferred by way of individual or universal succession in title. Liabilities of banks that already existed before 1 October 2017 are protected in accordance with and under the conditions laid down in the provisions of the By-laws of the ESF applying until 1 October 2017. After 30 September 2017, the ‘grandfathered’ status pursuant to the preceding sentence shall cease to apply as soon as the liability in question falls due, can be terminated or otherwise reclaimed, or if the liability is transferred by way of individual or universal succession in title.
2. Protection ceilings: The protection ceiling for each creditor is, until 31 December 2019, 20%, until 31 December 2024, 15%, and, as of 1 January 2025, 8.75% of DBAG’s own funds within the meaning of Article 72 CRR used for deposit protection purposes. Deposits established or renewed after 31 December 2011 shall be subject to the respective new protection ceilings as of the aforementioned dates, irrespective of the time when the deposits are established. Deposits established before 31 December 2011 shall be subject to the old protection ceilings until maturity or until the next possible termination date. This protection ceiling shall be notified to the Client by DBAG on request. It is also available on the internet at www.bankenverband.de.
3. Validity of the By-laws of the ESF: Further details of protection are contained in Section 6 of the By-laws of the ESF, which are available on request.
4. Transfer of claims: To the extent that the ESF or its mandatory makes payments to a customer, the respective amount of the customer's claims against DBAG, together with all subsidiary rights, shall be transferred simultaneously to the ESF.
5. Disclosure of information: DBAG shall be entitled to disclose to the ESF or to its mandatory all the necessary information in this respect and to place documents at their disposal.

With effect from 1st January 2021, DBAG will also be a participant in the UK Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to claimants if an institution is unable to meet its financial obligations. The FSCS is only available to certain types of claimants. There are limits on the amount of compensation available, which vary depending on the on the type of claim.

The FSCS is available in respect of deposits held with DBAG at its London branch. FSCS coverage in respect of deposit protection does not apply to certain types of claimants, amongst others, authorised persons.

The FSCS is also available in respect of investment business carried on by DBAG from its London branch. FSCS coverage in respect of investment business does not apply to certain types of claimants, amongst others, authorised persons and large companies.

Accordingly, clients may not have the right to claim through the FSCS for losses resulting from a default of obligations owed by DBAG in relation to its London branch under applicable law, rule or regulation.

Further details of the FSCS and the applicable compensation limits are available at the FSCS’s official website at www.fscs.org.uk.

Discontinuation of the Deposit Protection Fund for deposits at Deutsche Bank AG branches outside Germany after 31.12.2022

Wegfall des Einlagensicherungsfonds für Einlagen bei Filialen der Deutschen Bank AG außerhalb Deutschlands nach dem 31.12.2022