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You are viewing the version of the document as on 2024-11-19.

Timeline guidance

COMP 10.1 Application and Purpose

Application

COMP 10.1.1 R

This chapter applies to the FSCS.

COMP 10.1.2 G

It is also relevant to claimants.

Purpose

COMP 10.1.3 G

In most cases it is appropriate for there to be a limit on the amount of compensation payable by the FSCS and that there should be some part of the claim which is not compensatable and for which the claimant must bear the loss. The purpose of this chapter is to set these limits out.

COMP 10.1.4 G

[deleted]

COMP 10.2 Limits on compensation payable

COMP 10.2.1 R

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

COMP 10.2.2 G

The limits apply to the aggregate amount of claims in respect of each category of protected claim that an eligible claimant has against the relevant person (or, where applicable, a successor)18. Consequently, a claimant who has, for example, a claim against a relevant person (or, where applicable, a successor)18 in connection with protected investment business of £70,00020, and a further such claim of £20,0006 , will only receive the £85,00020 limit.

6 12 12 6 6 6 6 6 6 6 6 6 12 12
COMP 10.2.3 R

Table Limits

This table belongs to COMP 10.2.1R

Type of claim

Level of cover

Maximum payment

18 14

18

6 6

18

6 8 17 17 17 17
18

18

12 12

18

18

12 12

18

18

18

12 12

18

2

Protected investment business (except where the designated investment is a long-term care insurance contract that is a pure protection contract)20

100% of claim 12

12

£85,00020

12 12

20 Protected investment business where the designated investment is a long-term care insurance contract that is a pure protection contract

100% of claim

Unlimited

Protected home finance mediation 5

5 1

100% of claim 12

12

£85,00020

12

Protected non-investment insurance distribution 21

3

(1) where the claim is in respect of a liability subject to compulsory insurance : 100% of claim 3

Unlimited 3

(2) where the claim is in respect of:18

(a) a relevant omission; and18

(b) a professional indemnity insurance contract19, or would be in respect of a professional indemnity insurance contract19, if the insurance contract had been effected:18

100% of claim18

Unlimited 18

(3) where the claim is:18

(a) in respect of a relevant omission;18

(b) in respect of a relevant general insurance contract or would be in respect of a relevant general insurance contract if the insurance contract had been effected; and18

(c) arises from the death or incapacity of the policyholder owing to injury, sickness or infirmity:18

100% of claim18

Unlimited 18

(4) where the claim is in respect of:

(a) a relevant omission; and

(b) a pure protection contract, or would be in respect of a pure protection contract if the insurance contract had been effected:

100% of claim18

Unlimited 18

(5) 18 In all other cases: 90% of claim 12 3

12

Unlimited 3

19 Protected debt management business

100% of claim

£85,00020

26 Protected funeral plan business

100% of claim

£85,000
COMP 10.2.4 G

COMP 12 sets out the rules the FSCS will follow when calculating the amount of compensation payable.

COMP 10.2.5 G

COMP 12.4.4R includes further limits relating to certain claims against pre-IP completion day incoming EEA firms24, where the act or omission giving rise to the claim arose before IP completion day2322. These reflect the Investor Compensation Directive, which will continue to apply to EEA State compensation schemes after IP completion day23, under which compensation may be payable by the pre-IP completion day incoming EEA firm’sEEA State compensation scheme24.

18 18 22 7 7 18 7 7 7 7 18

Claims in cases where there is a successor

COMP 10.2.5A R

18No claimant shall be eligible to make a claim under the compensation scheme in respect of both the relevant person and a successor arising from the same act or omission by the relevant person.25

COMP 10.2.6 R

[deleted]2

COMP 10.2.7 R

[deleted]2

Claims arising under COMP 3.2.4 R4

COMP 10.2.9 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.

COMP 10.2.10 R

[deleted]

COMP 10.2.11 R

[deleted]

14
COMP 10.2.12 R

[deleted]

COMP 10.2.13 G

[deleted]

Claims in cases where a principal and its appointed representative are both in default

COMP 10.2.14 R

25No claimant shall be eligible to make a claim under the compensation scheme in respect of both a principal and its appointed representative arising from the same act or omission by the appointed representative.