The following Financial Services guidance note Produced in partnership with Honor Levy, non-practising solicitor provides comprehensive and up to date legal information covering:
This Practice Note covers the conditions necessary for the payment of compensation to a person by the Financial Services Compensation Scheme (FSCS).
This covers rules relating to:
who may claim compensation
from whom they can claim, and
what they can claim for
There are different regimes under the FSCS compensation scheme system for deposit claims, non-deposit claims and insurance policyholder protection. The Prudential Regulation Authority (PRA) is the relevant authority for rules relating to claims concerning deposits, dormant accounts and insurance provision, whereas the Financial Conduct Authority (FCA) is responsible for all other types of financial activity covered by the FSCS.
The relevant corresponding rules are found in the COMP sourcebook of the FCA Handbook and in the Depositor Protection, Policyholder Protection and Dormant Account Scheme parts of the PRA Rulebook.
In relation to those claims coming within the ambit of the FCA, compensation may be paid out by the FSCS to an eligible claimant (subject to COMP 11 (Payment of compensation)) if the FSCS is satisfied that:
an eligible claimant has made an application for compensation (and note COMP 3.2.1A, which states that the FSCS may treat persons who are or may be entitled to claim compensation as if they had done so)
the claim is in respect of a protected claim against a
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