Prudential Regulation Authority Rulebook

12.1

The FSCS must, or if the FSCS is subrogated automatically to the eligible claimant’s rights may, make any payment of compensation to a claimant in respect of a protected claim conditional on the claimant assigning the whole or any part of his rights against the relevant person (or where applicable, the successor) or against any third party, or both, to the FSCS on such terms as the FSCS thinks fit.

12.2

Upon payment of compensation by the FSCS (including partial compensation) to an eligible claimant in respect of a protected claim, all of that claimant’s rights against the relevant person (or where applicable, the successor) and any third party involved in or connected to the claim will be deemed to be automatically assigned by way of legal assignment to the FSCS absolutely on terms published by the FSCS.

12.3

Production of a statement showing such payment was made pursuant to 12.2 shall be conclusive evidence (or in Scotland sufficient evidence) that a legal assignment has been deemed to have been made.

12.4

An assignment completed and signed electronically in a form prescribed by the FSCS will be deemed to satisfy the formalities for a valid legal assignment.

12.5

Production of a hard copy of the electronically signed assignment form shall be conclusive evidence (or in Scotland sufficient evidence) that the formalities of a legal assignment have been complied with and that a legal assignment has occurred.

12.6

An assignment completed electronically in the prescribed form shall be treated as having been made by writing under the hand of the assignor for the purposes of section 136 of the Law of Property Act 1925 and any other formal requirement whatsoever without limitation.

12.7

If a claimant assigns the whole or any part of his rights against any person to the FSCS in accordance with this chapter, the effect of this is that any sum payable in relation to the rights so assigned will be payable to the FSCS and not the claimant.

12.8

The FSCS must inform the claimant that if, after taking assignment of rights, the FSCS decides not to pursue recoveries using those rights it will, if the claimant so requests in writing, reassign the assigned rights to the claimant. The FSCS must comply with such a request in such circumstances.

12.9

The changes to this rule are effective from 23:00 on 31/12/2020.

1. (1) The FSCS may determine that:
1. (a) if the claimant does not assign or transfer his rights under this Chapter;
2. (b) if it is impractical to obtain such an assignment or transfer; and/or
3. (c) if it is otherwise necessary or desirable in conjunction with the exercise of the FSCS’s powers under this Chapter or 13;
2. 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 UK, Gibraltar or any other state or country to create or give effect to such assignment or transfer or otherwise give full effect to those powers.
3. (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.