The following Financial Services guidance note Produced in partnership with Honor Levy, non-practising solicitor provides comprehensive and up to date legal information covering:
Since 1 April 2013, when making a claim for compensation to the Financial Services Compensation Scheme (FSCS), it is no longer necessary for the FSCS to seek a claimant's consent to assign their rights to it when seeking to claim compensation on their behalf. The FSCS may, and in the case of a deposit protection claim, must make any offer of compensation conditional on the assignment of the claimant's rights to the FSCS. The FSCS may also be automatically subrogated to the claimant's rights.
The purpose behind the assignment of rights is twofold:
it prevents any claimant pursuing its claim against another party so seeks to avoid the claimant being put in a better position; and
it enables the FSCS to maximise its recoveries
Claims are pursued by the FSCS with insolvency practitioners such as liquidators or administrators, where there is a prospect of dividends to creditors.
In taking any assignment, the FSCS must inform the claimant that if the FSCS decides not to pursue a claim, then the claimant may make a written request to have the claim reassigned to him/her. Where such a request is made, the FSCS must comply with it.
Before taking any assignment, the FSCS must inform the claimant of the claimant's own right to take action. Claimants may opt out of the obligation to assign their claims by declining
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