COMP 15
Special situations
COMP 15.1
Accelerated compensation for depositors
- 29/10/2008
Purpose
COMP 15.1.1
See Notes
When a relevant person is in default with claims against it for protected deposits, it maybe desirable for the FSCS to make accelerated payments of compensation, for the protection of consumers, to contribute to financial stability and to maintain market confidence.
- 06/08/2010
COMP 15.1.2
See Notes
To facilitate an accelerated payment of compensation, this section provides additional and alternative powers for the FSCS. These powers include the ability for the FSCS to pay compensation to eligible claimants without an application, to provide compensation by a variety of means and subject to conditions including by making a payment directly into an account maintained by another authorised person, to administer the payment of compensation on behalf of, or to pay compensation and recover from, another scheme or a government and/or to be subrogated automatically to the claimant's rights against the relevant person and/or any third party.
- 29/10/2008
Application
COMP 15.1.3
See Notes
This section applies in respect of compensation for claims for protected deposits.
- 29/10/2008
COMP 15.1.4
See Notes
Before using any power in this section, the FSCS must determine that using that power:
(1) would be beneficial to the generality of eligible claimants with protected deposits made with a relevant personin default in respect of whom the power is to be used; and
(2) is unlikely to result in any additional cost to the FSCS which would require the imposition of increased levies on participant firms, over and above those required if the power was not exercised, or any additional cost is likely to be justified by the benefits.
- 29/10/2008
COMP 15.1.5
See Notes
The FSCS's powers in this section may be used:
(1) separately or in any combination as an alternative and in substitution for the powers and processes elsewhere in this sourcebook;
(3) in relation to all or any part of a protected deposit or class of protected deposits made with the relevant person; and/or
(4) (where the FSCS uses its powers to administer the payment of compensation on behalf of, or to pay compensation or make a payment on account or an advance and recover from, a Non-UK Scheme or Other Funder (see COMP 15.1.14 R)) in respect of all or part of any protected deposit which is compensatable by and/or recoverable from the Non-UK Scheme or Other Funder, and the FSCS may make different provision for those parts of a protected deposit (and references to paying compensation shall be treated as referring to making a payment, making a payment on account or making an advance as appropriate).
- 29/10/2008
COMP 15.1.6
See Notes
- 29/10/2008
Determinations by the FSCS
COMP 15.1.7
See Notes
(1) Any power conferred on the FSCS to make determinations under this section is exercisable in writing.
(2) An instrument by which the FSCS makes the determination must specify the provision under which it is made, the date and time from which it takes effect and the relevant person and protected deposits, parts of protected deposits and/or classes of protected deposits in respect of which it applies.
(3) The FSCS must take appropriate steps to publish the determination as soon as possible after it is made.
(4) Failure to comply with any requirement in this rule does not affect the validity of the determination.
(5) A determination by the FSCS under this section may be amended, remade or revoked at any time and subject to the same conditions.
- 29/10/2008
Verification of determinations
COMP 15.1.8
See Notes
(1) The production of a copy of a determination purporting to be made by the FSCS under this section:
(a) on which is endorsed a certificate, signed by a member of the FSCS's staff authorised by it for that purpose; and
(b) which contains the required statements;
is evidence (or in Scotland sufficient evidence) of the facts stated in the certificate.(2) The required statements are:
(a) that the determination was made by the FSCS; and
(b) that the copy is a true copy of the determination.
(3) A certificate purporting to be signed as mentioned in (1) is to be taken to have been properly signed unless the contrary is shown.
- 29/10/2008
Effect of this section on other provisions in this sourcebook etc
COMP 15.1.9
See Notes
Other provisions in this sourcebook and FEES 6 are modified to the extent necessary to give full effect to the powers provided for in this section.
- 29/10/2008
COMP 15.1.10
See Notes
- 29/10/2008
Payment of compensation without an application
COMP 15.1.11
See Notes
The FSCS may treat an eligible claimant as if the eligible claimant had made a claim under the compensation scheme and pay compensation to an eligible claimant without having received an application and/or an assignment of the whole or any part of the claimant's rights against the relevant person and/or any third party (and COMP 3.2.1 R (1) and COMP 7.2.1 R are modified accordingly).
- 06/12/2009
Early compensation for term or notice accounts
Form and method of paying compensation
COMP 15.1.13
See Notes
The FSCS may pay compensation in any form and by any method (or any combination of them) that it determines is appropriate including, without limitation:
(1) by paying the compensation (on such terms as the FSCS considers appropriate) to an authorised person with permission to accept deposits which agrees to become liable to the claimant in a like sum;
(2) by paying compensation directly into an existing deposit account of (or for the benefit of) the claimant, or as otherwise identified by (or on behalf of) the claimant, with an authorised person (but before doing so the FSCS must take such steps as it considers appropriate to verify the existence of such an account and to give notice to the claimant of its intention to exercise this power); and/or
(3) (where two or more persons have a joint beneficial claim) by accepting communications from and/or paying compensation to any one of those persons where this is in accordance with the terms and conditions for communications and withdrawals of the protected deposit.
- 29/10/2008
Payment of compensation to which claimant is entitled from another scheme etc
COMP 15.1.14
See Notes
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 personin 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
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.- 29/10/2008
COMP 15.1.15
See Notes
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.
- 29/10/2008
COMP 15.1.16
See Notes
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 7.2.3A R is modified accordingly).
- 29/10/2008
Rights and obligations against the relevant person and third parties
COMP 15.1.17
See Notes
The FSCS may determine that:
(1) the payment of compensation by the FSCS; and/or
(2) the following actions by the FSCS (under COMP 15.1.14 R):
shall have all or any of the following effects:(a) administering the payment of compensation on behalf of; and/or
(b) paying and/or making a payment on account of compensation from;
a Non-UK Scheme or Other Funder;(3) the FSCS shall immediately and automatically be subrogated, subject to such conditions as the FSCS determines are appropriate, to all or any part (as determined by the FSCS) of the rights and claims in the United Kingdom and elsewhere of the claimant against the relevant person and/or any third party (whether such rights are legal, equitable or of any other nature whatsoever and in whatever capacity the relevant person or third party is acting) in respect of or arising out of the claim in respect of which the payment of or on account of compensation was made;
(4) the FSCS may claim and take legal or any other proceedings or steps in the United Kingdom or elsewhere to enforce such rights in its own name or in the name of, and on behalf of, the claimant or in both names against the relevant person and/or any third party;
(5) the subrogated rights and claims conferred on the FSCS shall be rights of recovery and claims against the relevant person and/or any third party which are equivalent (including as to amount and priority and whether or not the relevant person is insolvent) to and not exceed the rights and claims that the claimant would have had; and/or
(6) such rights and/or obligations (as determined by the FSCS) as between the relevant person and the claimant arising out of the protected deposit in respect of which the payment was made shall be transferred to, and subsist between, another authorised person with permission to accept deposits and the claimant provided that the authorised person has consented (but the transferred rights and/or obligations shall be treated as existing between the relevant person and the FSCS to the extent of any subrogation, transfer or assignment for the purposes of (3) to (5) and COMP 15.1.18 R).
- 29/10/2008
COMP 15.1.18
See Notes
The FSCS may alternatively or additionally make the actions in COMP 15.1.17R (1) and COMP 15.1.17R (2) conditional on the claimant assigning or transferring the whole or any part of all such rights as he may have against the relevant person and/or any third party (including, for the avoidance of any doubt, any Non-UK Scheme or Other Funder) on such terms as the FSCS determines are appropriate.
- 29/10/2008
COMP 15.1.19
See Notes
The FSCS may determine that 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 15.1.17R (3) in the name of, and on behalf of, the claimant against the relevant person and/or any third party.
- 29/10/2008
COMP 15.1.20
See Notes
(1) The FSCS may determine that:
(a) if the claimant does not assign or transfer his rights under COMP 15.1.18 R;
(b) if it is impractical to obtain such an assignment or transfer; and/or
(c) if it is otherwise necessary or desirable in conjunction with the exercise of the FSCS's powers under COMP 15.1.17 R to COMP 15.1.19 R;
that claimant shall be treated as having irrevocably and unconditionally appointed the chairman of the FSCS for the time being to be his attorney and agent and on his behalf and in his name or otherwise to do such things and execute such deeds and documents as may be required under such laws of the United Kingdom, another EEA State or any other state or law-country to create or give effect to such assignment or transfer or otherwise give full effect to those powers.(2) The execution of any deed or document under (1) shall be as effective as if made in writing by the claimant or by his agent lawfully authorised in writing or by will.
- 29/10/2008