Depositor preference where the deposit is recived from a fiduciary

Do deposits received from financial institutions on behalf of clients that are individuals and SMES benefit from depositor preference.

Article 108(1)(a) of Directive 2014/59/EU (BRRD) provides depositor preference to: (i) that part of eligible deposits from natural persons and micro, small and medium-sized enterprises which exceeds the coverage level provided for in Article 6 of Directive 2014/49/EU; (ii) deposits that would be eligible deposits from natural persons, micro, small and medium 13sized enterprises were they not made through branches located outside the Union of institutions established within the Union. Article 7(3) of the DGSD states: 3. Where the depositor is not absolutely entitled to the sums held in an account, the person who is absolutely entitled shall be covered by the guarantee, provided that that person has been identified or is identifiable before the date on which a relevant administrative authority makes a determination as referred to in point (8)(a) of Article 2(1) or a judicial authority makes a ruling referred to in point (8)(b) of Article 2(1). Where several persons are absolutely entitled, the share of each under the arrangements subject to which the sums are managed shall be taken into account when the limit provided for in Article 6(1) is calculated. As such, in the case of fiduciary deposits, the part of the deposit that is on behalf of a person or persons that are eligible can be considered to be an eligible deposit. Therefore, the covered element of such deposits fall within 108(1)(b). Confirmation is requested that this also extends to 108(1)(a). In summary: The DGS provides that such deposits can be eligible deposits, clarifying the relevant circumstances.  Where a depositor places a deposit on behalf of a natural person or SME, the element that is or would be an eligible deposit is placed on behalf of a natural person or SME and should be treated as being from that person or persons.