Protected deposits: Payments from other schemes

Part

COMP Compensation Sourcebook

Chapter

Protected deposits: Payments from other schemes

Printed on: 14/12/2024

Rulebook at: 17/12/2013

COMP 15

Protected deposits: Payments from other schemes

COMP 15.1

Payments from other schemes

01/10/2012

Purpose

COMP 15.1.2

This section provides the FSCS with the power to administer the payment of compensation on behalf of, or to pay compensation and recover from, another scheme or a government. This section operates separately from Part XVA of the Act.

01/04/2013

Application

COMP 15.1.3

This section applies in respect of compensation for claims for protected deposits.

01/04/2013

Payment of compensation to which claimant is entitled from another scheme etc

COMP 15.1.14

If the FSCS is satisfied that:

(1) a claimant is or is likely at some future date to become entitled to receive a payment of compensation in respect of his actual, contingent or future rights against a relevant person in default:

(a) under a scheme which is maintained by an EEA State or any other state or person comparable to the compensation scheme (in this section, a "Non-UK Scheme"); and/or

(b) as a result of a guarantee given or arrangements made by the Government of the United Kingdom, an EEA State, any other government or any other authority (in this section, an "Other Funder"); and

(2) the FSCS has received prior funding in respect of, or is satisfied that it will be able to recover, the amount of that payment from the Non-UK Scheme or Other Funder;

the FSCS may, irrespective of whether or not the relevant person is in default under the laws or regulations of any other EEA State or any other state or law-country:

(3) make a payment in respect of all or part of that compensation (whether or not yet due or payable) from the Non-UK Scheme or Other Funder, with or without the Non-UK Scheme or Other Funder's prior agreement;

(4) make a payment on account of, or advance to the claimant, the whole or part of the amount in (3) on such terms as the FSCS considers appropriate;

(5) (having been satisfied as to the total amount to be paid or advanced to the claimant) ascertain the proportion of any such payment or advance attributable to the Non-UK Scheme or Other Funder at any time, whether before or after making the payment or advance;

(6) (to the extent that prior funding has not been provided by the Non-UK Scheme or Other Funder) recover from the Non-UK Scheme or Other Funder the whole or any part of the amount of compensation paid or monies paid on account or advanced in respect of potential compensation which is or is likely to be payable to a claimant by the Non-UK Scheme or Other Funder, in accordance with COMP 15.1.17 R to COMP 15.1.20 R; and/or

(7) take such other steps in connection with such payment or advance by the FSCS or to facilitate the payment of compensation that is due or may become due from the Non-UK Scheme or Other Funder as the FSCS considers appropriate;

and references to payment of compensation, payment on account or advance to the claimant include taking such action for the claimant's benefit or on the claimant's behalf.

01/04/2013

COMP 15.1.15

In determining the proportion of any such payment or advance attributable to the FSCS, a Non-UK Scheme or Other Funder, the FSCS may use any methodology or approach it considers appropriate if (and to the extent that) it considers that the cost of ascertaining the proportion by reference to each claimant would exceed or be disproportionate to the benefit of doing so.

01/04/2013

COMP 15.1.16

If the FSCS has made a payment or advance attributable to a Non-UK Scheme or Other Funder, and has acquired a right of recovery against the relevant person or any third party in respect of that amount, the FSCS may determine that the whole or any part of any recoveries which it makes shall be held by it for the benefit of and/or shared amongst the FSCS, that Non-UK Scheme, that Other Funder and/or any other person which has provided prior funding in respect of a payment or advance attributable to any such body (and COMP 7.5.1 R is modified accordingly).

01/04/2013

Rights and obligations against the relevant person and third parties

COMP 15.1.19

The FSCS may determine in accordance with COMP 7.3.4 Rthat the making of an advance by the FSCS to the claimant (under COMP 15.1.14R (4)) shall have the effect that the FSCS may claim and take legal or any other proceedings or steps in the United Kingdom or elsewhere to enforce the rights and claims of the claimant referred to in COMP 7.3.8 R (3) in the name of, and on behalf of, the claimant against the relevant person and/or any third party.

01/04/2013