COMP 1.4 EEA Firms
Incoming EEA firms which are conducting regulated activities in the United Kingdom under a BCD, IMD, ISD or UCITS Directive passport are not required to participate in the compensation scheme in relation to those passported activities. They may apply to obtain the cover of, or 'top-up' into, the compensation scheme if there is no cover provided by the incoming EEA firm's Home State compensation scheme or if the level or scope of the cover is less than that provided by the compensation scheme. This is covered by COMP 14.221
If an incoming EEA firm "tops-up", and then becomes insolvent, the Home State compensation scheme will pay compensation for claims up to the limit and scope of the Home State compensation scheme, with the FSCS paying compensation for the additional amount in accordance with the provisions in this sourcebook.
The DGD and ICD require the FSCS to make arrangements with the relevant Home State compensation scheme regarding the payment of compensation (COMP 14.3.1R).