Are trustees of large defined benefit occupational pension schemes covered deposits under the Deposit Guarantee Scheme?

• A. Yes
• B. No
• C. Only if they are charities
• D. Only when included in another category

Answer: (B)

Deposits are protected under the scheme only if the depositor falls into the eligible categories. Trustees of a large defined benefit occupational pension scheme don’t count as such a depositor category. The trustee role is fiduciary for the beneficiaries, and the scheme’s cash deposits with banks aren’t treated as deposits belonging to an eligible depositor. The scheme’s funds aren’t covered by the Deposit Guarantee Scheme, whereas the Scheme does cover deposits for individuals and certain other categories (like charities or SMEs) if they qualify. So, in this scenario, the deposits are not covered.