Financial Services Compensation Scheme (FSCS)

1. Background

Citibank International plc is a member of United Kingdom's Financial Services Compensation Scheme (FSCS), which was established according to article 213 of the Financial Services & Markets Act 2000 (FSMA).

FSCS is a company separate from the Financial Supervisory Authority (FSA), the competent authority for the supervision of financial institutions, and is registered at 25 The North Colonnade, Canary Wharf, London E14 5HS, in London, United Kingdom.

2. Protected depositors - Exceptions

A protected by the FSCS depositor is any person who is not:

• a regulated firm under the FSMA
• a financial institution not registered in the United Kingdom
• a collective investment scheme
• pension and retirement fund
• supranational organizations, governments and central administrative authorities, provincial, regional or legal authorities
• directors and managers of an institution member of the FSCS in default
• close relatives of persons excluded above
• legal entities of the same group as the institution in default
• persons holding at least 5% of the capital of the institution in default and auditors of the institution in default
• persons who are responsible or have contributed to the default
• large companies or large mutual associations

Protected depositors are only individuals or small and medium sized companies/ partnerships.

3. Protected deposits

A protected by FSCS deposit is a cash deposit held by a protected by FSCS depositor in either Citibank International plc in the UK or in any branch of Citibank International plc in another state-member of the European Union.
Deposits not protected by FSCS are the following:

1. a bond issued by a credit institution which is part of the institution's capital
2. a secured deposit
3. a deposit made without disclosing the identity of the depositor
4. a deferred share issued by a building society

4. Funding of FSCS

The funds used by FSCS for compensation are contributed by the institutions which are members of FSCS and are determined according to the regulated financial activities they offer.

In any case that an institution-member of FSCS becomes insolvent the remaining institutions-members of FSCS pay the cost of compensation to the protected depositors.

5. European Union Branches

Under the terms of the European Council Deposit Guarantee Directive 94/19 the compensation cover for any protected deposit held in an institution's branch in the European Union must be provided by the Deposit Guarantee System operating in the home state of the institution.

6. Further information

For any further information regarding the operation of the FSCS you may visit FSA's web site at: www.fsa.gov.uk