COMP 10.2 Limits on compensation payable

The limits on the maximum compensation sums payable by the FSCS for protected claims are set out in COMP 10.2.3 R.

4If a firm has a claim under COMP 3.2.4 R, the FSCS must treat the share of the shortfall of each customer as if it were a protected claim for the purposes of calculating the limits of compensation payable, within COMP 10.2, in relation to that customer.

1. (1)

   9This rule applies from 1 December 2008 to 30 September 2009.

2. (2)

   In the event of a merger between two building societies or a building society and the subsidiary of another mutual society (whether or not of the same type),10 there is a separate and additional £50,000 maximum payment limit for a claimant with respect to claims for protected deposits held under the name of the dissolved entity 10provided the following conditions are satisfied:

   10
   1. (a)

      the merger takes effect between 1 December 2008 and 30 September 2009;

   2. (b)

      the successor entity 10has notified the FSA before the merger takes effect that it wishes this rule to apply;

      10
   3. (c)

      before the merger took effect, the claimant had a protected deposit with each of the merging entities;10 and

      10
   4. (d)

      the successor entity10 continues to operate the business of the dissolved entity10 under the name of the latter.

      1010

   [Note: The FSA will publish the names of any successor entity10 and the relevant name to which a separate £50,000 limit applies.]

   10
3. (3)

   A successor entity10 to which this rule applies must make and retain a written record of potential claimants for whom the separate limit applies.

   10
4. (4)

   In this rule "mutual society" and "subsidiary" have the same meanings as in the Building Societies (Funding) and Mutual Societies (Transfers) Act 2007.1011

1. (1)

   11This rule applies from 16:00 on 29 March 2009 to 30 September 2009.

2. (2)

   In the event of a transfer of protected deposits from one deposit-taking firm to another deposit-taking firm pursuant to the property transfer powers under the Banking Act 2009, there is a separate and additional £50,000 maximum payment limit for a claimant with respect to claims for protected deposits held under the name of the transferor provided the following conditions are satisfied:

   1. (a)

      the transfer takes effect between 16:00 on 29 March 2009 and 30 September 2009;

   2. (b)

      the transferee has notified the FSA before the transfer takes effect that it wishes this rule to apply;

   3. (c)

      before the transfer took effect, the claimant had a protected deposit with each of the transferor and the transferee; and

   4. (d)

      the transferee continues to operate the business relating to the transferred protected deposits under the name of the transferor (or such part of the name as is permitted by law).

   [Note: The FSA will publish the names of any transferee and the relevant name to which a separate £50,000 limit applies.]

3. (3)

   A transferee to which this rule applies must make and retain a written record of potential claimants for whom the separate limit applies.