Legal Floris LLC

Deposit protection aims to support confidence in the financial system by securing retail customers with a capped layer of protection over their bank deposit. A deposit guarantee scheme (DGS) within the European Union insures qualifying deposits up to 100.000 Euro. For creditors, there can be indistinctness and confusion on what constitutes a ‘qualifying deposit’ under national deposit protection schemes. As a consequence many DGS claims are rejected by the administrator of the scheme due to the lack of compliance with European regulation.

A deposit guarantee scheme is activated when a bank fails or is likely to fail. To safeguard the stability of the local and global financial system, regulators intervene. The objective of this early intervention is to examine swift resolution. The available options for expeditious action are codified in the Bank Resolution and Recovery Directive (BRRD), and include tools as the sale of the business, asset separation, and bail-in. Deposit protection is a crucial element for early intervention because it allows regular customers to reclaim a substantial part of their account balance and protect themselves in case of insolvency and winding down of the bank.

To comply with the European directives on the business of credit institutions (89/646/EEC), the prevention of the use of the financial system for the purpose of money laundering (91/308/EEC), and deposit guarantee schemes (94/19/EC), Legal Floris LLC ensures that customers not just understand the requirements but mainly are able to prepare for a successful DGS claim process.

Legal Floris LLC exclusively works for creditors duped by bank failure and investment fraud, whilst considering tailored services for this group of clients. The result is that over the years, Legal Floris LLC and its staff members have collaborated with various central banks and Deposit Guarantee Schemes in the EU member states, as well as the Federal Insurance Deposit Corporation (FDIC) in the United States, and the Financial Services Compensation Scheme (FSCS) in the United Kingdom.

Not all creditors in bank failure estimate the decisive importance of the DGS claim filing and approval process. The jurisdiction of the national DGS is determined by the geographic location of the bank account and/or the investment made. Therefore, unsecured account balances above the insured DGS protection levels, are not extra subordinated in a foreign liquidation. A domestic creditor or insolvency hierarchy is followed where unsecured account balances such as deposits exceeding the DGS level and disqualified creditors come after the priority position of the liquidator and secured claims. Only after these priority positions are repaid completely, unsecured creditors receive payments on a ‘pari passu’ basis to ensure equal treatment.

Legal Floris LLC comprises the working of, as well as the underlying theories for depositor protection. Therefore, fund recovery services are offered in the first stage of the resolution stages on the basis of ‘no cure no pay’: creditors only pay our fees after a DGS claim is approved and paid into the designated bank account of the creditor. This provision should not be confused with the other remaining stages of the fund recovery process in bank failure. Yet, more information can easily be given in a personal consultation. Please complete the contact form below or call at 001 646 513 2855 for direct contact with Legal Floris LLC and its representatives.