(1) The [regulators] must by rules [made in accordance with an order under subsection (1A)] establish a scheme for compensating persons in [cases where—
(a) relevant persons are unable, or likely to be unable, to satisfy claims against them, . . .
[(aa) relevant exchanges are unable, or likely to be unable, to satisfy claims made against them in connection with a regulated activity relating to a trading facility carried on by the exchange, or]
(b) persons who have assumed responsibility for liabilities arising from acts or omissions of relevant persons [or relevant exchanges] (“successors”) are unable, or likely to be unable, to satisfy claims against the successors that are based on those acts or omissions].
[(1A) The Treasury must by order specify—
(a) the cases in which the FCA may, or may not, make rules under subsection (1), and
(b) the cases in which the PRA may, or may not, make rules under that subsection.]
(2) The rules [(taken together)] are to be known as the Financial Services Compensation Scheme (but are referred to in this Act as “the compensation scheme”).
(3) The compensation scheme must, in particular, provide for the scheme manager—
[(a) to assess and pay compensation, in accordance with the scheme, to claimants in respect of claims made in connection with—
(i) a regulated activity carried on (whether or not with permission) by relevant persons; and
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