What’s the Deposit Guarantee Fund (Fondo de Garantía de Depósitos)? > Securities held on deposit > Grounds for enforcing the guarantee and eligible beneficiaries

Grounds for enforcing the guarantee and eligible beneficiaries

There are two instances in which the FGD must pay out the guaranteed amount of securities held on deposit to the account holders. Here we explain them.

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The FGD will pay out, this time from the securities guarantee compartment, the guaranteed amount of eligible securities and financial instruments on the occurrence of any of the following events:

  1. Where a court judgment is delivered declaring the credit institution insolvent and where this has the effect of suspending the return of the securities or financial instruments. Note, however, that the FGD will not make payment if the suspension is lifted while the return period is still running.
  2. Where Banco de España declares that the credit institution is not able to fulfil its obligations to investors because of events that have become known to Banco de España and that relate directly to the credit institution's financial position.

The following circumstances must exist in order for the Banco de España to make such a declaration:

  1. The investor must have requested that the credit institution return the securities or financial instruments held there and they were not then returned within the maximum term of 21 working days.
  2. The credit institution does not fall within the situation provided for in Article 8(1)(a) of Royal Decree 2606/1996.
  3. Banco de España heard the views of the credit institution concerned before making its declaration.

Guaranteed deposits of securities


Non-guaranteed deposits of securities


Payment of guaranteed amounts

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