Transitional Provisions and Schedules

Part

COMP Compensation Sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 22/12/2024

Rulebook at: 30/12/2010

Transitional Provisions and Schedules

COMP TP 1

Transitional Provisions

COMP TP 1.1

Transitional Provisions Table

(1)

(2)

(3)

(4)

(5)

(6)

Material to which the transitional provision applies

Transitional Provision

Transitional provision: dates in force

Handbook Provisions : coming into force

COMP 5

Protected claims

Indefinitely

Commencement

(1)

A claim for a protected deposit or under a protected contract of insurance includes a claim in respect of an article 9 default, subject to (2)

(2)

A claim must be treated as a claim in relation to a protected contract of insurance under COMP 5.4.5 R if the conditions in article 9A or 10(1)(a)-(d) of the compensation transitionals order are satisfied.

Commencement but on 6 December 2006 for article 9A of the compensation transitionals order

(3)

A claim in connection with protected investment business includes a claim in respect of a pending application.

(4)

Where the claim is in respect of an article 9 default or a pending application, theFSCSmust apply the rules of therelevant former scheme, as they applied to the default beforecommencement, unless (2) applies.

(5)

The rules of each investment business compensation scheme are amended so that references to the person managing the scheme are replaced by references to the FSCS.

(6)

The rules of the Friendly Societies Protection Scheme are amended so that:

(a)

references to the person managing the scheme are replaced by references to the FSCS; and

(b)

References to functions conferred upon the Friendly Societies Protection Scheme Board are replaced by references to functions conferred upon the FSCS.

(7)

Where the default occurs after commencement, aclaimfor aprotected depositincludes aclaimthat arose beforecommencementin respect of:

(a)

a deposit within the meaning of the Banking Act 1987; and

(b)

a claim in respect of a protected investment within the meaning of section 27 of the Building Societies Act 1986.

(8)

Where the default occurs after commencement, aclaim in connection withprotected investment businessincludes aclaimthat could have been entertained under aninvestment business compensation scheme(provided that the person making the claim has not also made apending applicationarising out of the same set of facts).

COMP 13.5 and COMP 13.6

Expired

COMP 13.4.6 R and COMP 13.6.7 R

Expired

COMP 13.5.8 R

Expired

COMP 6.2.1 R

Credit unions

Indefinitely

Commencement

In relation to a claim or potential claim referred to in (1) or (2), a relevant person is also any credit union which:

(1)

becomes unable, or is likely to become unable, to satisfy claims against it which relate to deposits which were accepted before 2 July 2002; or

(2)

(a)

has ceased to have Part IV permission by virtue of article 3(4) of the Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002 (SI 2002/704) (failure to comply with a direction to re-apply for Part IV permission); and

(b)

thereafter, becomes unable, or is likely to become unable, to satisfy claims against it which relate to deposits which were accepted on or after 2 July 2002 but before the date on which it ceased to have Part IV permission.

COMP 6.2.1 R

In consequence of transitional provision 5R, compensation can be provided:

(a)

in respect of a credit union which is unable, or likely to become unable, to satisfy claims for protected deposits accepted before 2 July 2002; and

(b)

where a credit union has ceased to hold a Part IV permission (because of failure to comply with a direction to re-apply for the Part IV permission), for protected deposits accepted on or after 2 July 2002 but before the date at which it ceased to have the Part IV permission.

COMP 6.2.1 R

In consequence of transitional provision 5R(1), a credit union becomes a relevant person in respect of deposits accepted before 2 July 2002.

Amendments introduced by the Compensation Sourcebook (Amendment No.2) Instrument 2003.

Provisions and definitions arising out of (2) only apply to defaults, or circumstances giving rise to arrangements made under COMP 3.3.1 R or to measures taken under COMP or to measures taken under COMP 3.3.3 R, occurring after the date in (6)

Indefinitely

1 December 2003

COMP 13.6.8 R

Expired

COMP 5.7.1 R, COMP 13.4.7 R and COMP 13.6.9 R

Rules not in effect.

31 October 2004 to 13 January 2005

31 October 2004

FEES 6.3.1 R, FEES 6.3.22 R, FEES 6.4.8 R, FEES 6.4.6 R, FEES 6.5.1 R and FEES 6.5.6 R

With regard to contribution group A.18 Mortgage lenders, advisers and arrangers, the management expenses levy and compensation costs levy for 2005/2006 may also take account of expenditure in the period 31 October 2004 to 31 March 2005.

31 October 2004 to 31 March 2006

31 October 2004

FEES 6.5.7R (4), FEES 6.3.22 R, FEES 6.4.6 R, FEES 6.4.8 R, FEES 6.5.1 R, and FEES 6.5.6 R

With regard to contribution group A.19 General insurance mediation, the management expenses levy and compensation costs levy for 2005/2006 may also take account of expenditure in the period 14 January 2005 to 31 March 2005.

14 January 2005 to 31 March 2006

31 October 2004

FEES 6.5.7R (4), FEES 6.5.10 R, and FEES 6.5.13R (2)

For the period 31 October 2004 to 31 March 2006 the tariff base will be the annual income (relating to the relevant contribution group) reported in accordance with note 3 to AUTH 4 Annex 2 R or, if the firm prefers, that amount of its annual income which is attributable to business conducted with eligible claimants but only if the firm notifies FSCS of the amount by 28 February 2005.

31 October 2004 to 31 March 2006

31 October 2004

FEES 6.5.7R (5), FEES 6.5.11 R, and FEES 6.5.13R (2)

For the period 14 January 2005 to 31 March 2006 the tariff base will be the annual income (relating to the relevant contribution group) reported in accordance with note 3 to AUTH 4 Annex 2 R or, if the firm prefers, that amount of its annual income which is attributable to business conducted with eligible claimants but only if the firm notifies FSCS of the amount by 28 February 2005.

14 January 2005 to 31 March 2006

31 October 2004

COMP 5.4.4 R (4)(a) and COMP 5.4.4 R (4)(b)

The changes to COMP 5.4.4 R (4) made in the Compensation Sourcebook (Amendment No 7) Instrument 2006 do not apply in relation to defaults declared before 6 June 2006.

Indefinitely

6 June 2006

COMP 10.2.3 R

The change to the limit for protected deposits made by the Compensation Sourcebook (Protected Deposits Limit) Instrument 2007 does not apply in relation to a claim against a relevant person that was in default before 1 October 2007.

From 1 October 2007 indefinitely

Amended with effect from 1 October 2007

Amendments introduced by the Compensation Sourcebook (Amendment No 8) Instrument 2008

Provisions and definitions arising out of (2) only apply to defaults on or occurring after 7 October 2008

From 7 October 2008 indefinitely

7 October 2008

COMP 10.2.3 R

The change to the limit for protected deposits made by the Compensation Sourcebook (Deposit Guarantee Schemes Directive Amendments) Instrument 2009 does not apply in relation to a claim against a relevant person that was in default before 30 June 2009.

From 30 June 2009 indefinitely

30 June 2009

Amendments to COMP 10.2.3 R introduced by the Financial Services Compensation Scheme (Limits Amendment) Instrument 2009

Provisions and definitions arising out of (2) only apply to defaults on or occurring after 1 January 2010.

From 1 January 2010 indefinitely

1 January 2010

COMP 4.3.1 R

The change to the eligibility requirements for claimants for protected deposits made by the Financial Services Compensation Scheme (Banking Compensation Reform) Instrument 2009 does not apply in relation to a claim against a relevant person that was in default before 1 August 2009.

From 1 August 2009 indefinitely

1 August 2009

COMP 17.3 and COMP 17.2.7 R

(1) This transitional provision applies to a firm to which COMP 17 will apply.

(2) If a firm operates less than 5,000 accounts held by eligible claimants, it may make or revoke an election (under COMP 17.2.7 R) that the electronic SCV rules do not apply.

(3) A firm that made a valid election under (2) must provide the FSA with an SCV pre-implementation report by 31 July 2010 based on the firm's progress as at 30 June 2010 which must:

(a) state the number of accounts held by eligible claimants as at 30 June 2010;

(b) confirm that the firm is making the election in (2); and

(c) state whether the firm's board of directors believes the firm will comply with the FSA's SCV requirements by 31 December 2010 and if not why not.

(4) A firm that has not made a valid election under (2) must provide the FSA with an SCV pre-implementation report by 30 July 2010 based on the firm's progress as at 30 June 2010 which must state:

(a) whether the firm has a plan for implementing the FSA's SCV requirements;

(b) how the firm proposes to transfer to the FSCS a single customer view for each eligible claimant including specifying the transfer method and format;

(c) the dates the firm started implementation and plans to end implementation and whether implementation is on time;

(d) whether the firm's board of directors believes implementation will be completed by 31 December 2010 and if not why not; and

(e) any issues that may impact on the firm's ability to implement by 31 December 2010.

From 6 December 2009 until 30 December 2010

31 December 2010

01/01/2010

COMP Sch 1

Record-keeping requirements

01/12/2004

COMP Sch 1.1

The aim of the guidance in the following able is to give the reader a quick overall view of the relevant record keeping requirements. The Rules listed below apply only to FSCS (the scheme manager).

It is not a complete statement of those requirements and should not be relied upon as it were.

01/12/2004

COMP Sch 1.2

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

FEES 6.3.14 R

FSCS funding

Full details of the movement of funds within sub-schemes.

Ongoing requirement.

N/A

COMP 10.2.10 R(3)

Potential claimants for whom the separate limit under COMP 10.2.10 R(2) applies

Sufficient details to enable the identification of claimants for whom the separate limit under COMP 10.2.10 R(2) applies

As implicit from the rules in COMP

COMP 10.2.11 R

Potential claimants for whom the separate limit under COMP 10.2.11R (2)applies

Sufficient details to enable the identification of claimants for whom the separate limit under COMP 10.2.11R (2)applies

As implicit from the rules in COMP

06/08/2009

COMP Sch 2

Notification requirements

01/12/2004

COMP Sch 2.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant requirements for notification and reporting. In all cases, other than those concerning Chapter 13 and Chapter 14, the notification rules in COMP apply only to FSCS (the scheme manager).

It is not a complete statement of those requirements and should not be relied on as if it were.

01/02/2004

COMP Sch 2.2

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

COMP 2.2.5G

Annual Report

Not specified in COMP - see Memorandum of Understanding (MoU) between FSAand FSCS

End of Financial Year

Not specified in COMP (see MoU)

COMP 2.2.7R

Default of relevant person

Not specified - although FSCS must take appropriate steps to ensure claimants are informed about how they can claim compensation

default of a relevant person

Not specified - but as soon as practicable after determining default

FEES 6.2.1 R

Right to exemption for specific costs and compensation costs levy

Notice that firm does not conduct business that could give rise to a claim on the FSCS and has no reasonable likelihood of doing so

If it does not, or if it ceases to, conduct business with persons eligible to claim on FSCS, unless it has already given such notice

None specified though exemption generally only takes effect from the date of receipt of notice by FSCS

FEES 6.2.4 R

Loss of right to seek exemption from specific costs & compensation costs levy

Statement that firm no longer qualifies for exemption because it carries on business with persons eligible to claim on FSCS

Firm loses the right to claim the exemption.

As soon as reasonably practicable

FEES 6.5.13 R

Levy base for participant firm

The contribution groups to which the participant firm belongs. The total amount of business (measured in accordance with the appropriate tariff bases, which it conducted as at 31 December of the previous year)

The end of the calendar year (the occasion of 31 December every year beginning with 31 December 2001)

By end February

FEES 6.7

Participant firms compensation levy for the financial year

Amount of levy payable by the participant firm

The decision by the FSCS that it must impose a levy

30 days before the levy is payable

COMP 14.2.1R

Application by eligible inward passporting EEA firm to obtain top-up cover into compensation scheme

That firm is qualifying incoming EEA firm. The sub-scheme(s) the firm wishes to participate in. Confirmation that the level or scope of cover offered by its home state scheme(s) is less than that available in the UK.

The firm's decision that it wishes to obtain top-up cover into the UK scheme.

N/A

COMP 14.4.5R

Termination of top-up cover

Statement that incoming EEA firm is terminating top-up cover

Decision by firm to resign from FSCS

6 months notice

COMP 14.4.6R

Termination of inward passporting EEA firm's top-up cover into compensation scheme

The firm's resignation from the compensation scheme and the level of compensation available to clients of the firm's UK branch following its decision to resign from FSCS

Termination of firm's top-up cover

No later than six weeks after the end of the firms participation in compensation scheme

COMP TP 29R(2) and COMP 17.2.7 R

Election or revocation of election that the electronic SCV rules do not apply.

See Matter to be notified

Immediately

06/12/2009

COMP Sch 3

Fees and other required payments

01/12/2004

COMP Sch 3.1

The rules in FEES 6 give FSCS (the scheme manager) the power to raise levies on participant firms in order to meet its expenses. The rules in FEES 6 do not specify the amount of any levy but do specify how a participant firm's share of a levy is to be calculated and any limit on the amount leviable by the FSCS is a particular period.

01/01/2006

COMP Sch 4

Powers Exercised

01/12/2004

COMP Sch 4.1

The following powers and related provisions in or under the Act and the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001 ("the compensation transitionals order") have been exercised by the FSA to make the rules in COMP:

Section 138 (General rule-making power)

Section 156 (General supplementary powers)

Section 213 (The compensation scheme)

Section 214 (General)

Section 215 (Rights of the scheme in insolvency)

Section 216 (Continuity of long-term insurance policies)

Section 217 (Insurers in financial difficulties)

Section 218 (Annual report)

Section 218A (Authority's power to require information)

Section 219 (Scheme manager's power to require information)

Section 316(1) (Direction by Authority)

Article 4 (Pending Applications) of the compensation transitionals order

Article 6 (Post-commencement applications) of the compensation transitionals order

Article 9 (Article 9 defaults occurring before commencement) of the compensation transitionals order

Article 9A (Contributions in relation to mesothelioma claims) of the compensation transitionals order.

Article 10 (Applications in respect of compulsory liability insurance) of the compensation transitionals order

Article 12 (Applications under the new scheme) of the compensation transitionals order

06/01/2010

COMP Sch 4.2

The following additional powers have been exercised by the FSA to make the rules in COMP:

Articles 3 (Further power for Authority to make rules concerning mesothelioma claims) and 4 (Modification of FSMA in relation to FSA rules for mesothelioma claims) of the mesothelioma regulations.

Section 123 (Role of FSCS) of the Banking Act 2009

06/12/2009

COMP Sch 4.3

The following powers in the Act have been exercised by the FSA to give the guidance in COMP:

Section 157(1) (Guidance)

01/12/2004

COMP Sch 5

Rights of action for damages

01/12/2004

COMP Sch 5.1

The table below sets out the rules in COMP, contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

If a "yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150 unless a "yes" appears in the column headed "Removed". A "yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

In accordance with the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256) a "private person" is:

any individual, except when acting in the course of carrying on a regulated activity; and

any person who is not an individual, except when acting in the course of carrying on business of any kind;

but does not include a government, local authority or an international organisation.

The column headed "For other person?" indicates whether the rule is actionable by a person other than a private person, in accordance with those Regulations. If so, an indication of the type of person by whom the rule is actionable is given.

The vast majority of rules in COMP are rules to which the FSCS is subject. No right of action arises under section 150 for breach of these rules, as the FSCS is not an authorised person.

01/12/2004

COMP Sch 5.2

Chapter/Appendix

Section/Annex

Paragraph

For private person?

Removed

For other person?

COMP 1

Yes - COMP 1.5.11 G

COMP 13

Funding (all rules)

Yes

COMP 14.4.6R

Yes

31/12/2006

COMP Sch 6

Rules that can be waived

01/12/2004

COMP Sch 6.1

The rules in COMP cannot be waived by the FSA, except:

(1) FEES 6.5.13 R ;

(2) COMP 14.4.6 R

01/01/2006