COMP 13.3 Exemption

1. (1)

   A participant firm which does not conduct business that could give rise to a protected claim by an eligible claimant and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:

   1. (a)

      it has notified the FSCS in writing that those conditions apply; and

   2. (b)

      the conditions in fact continue to apply.

2. (2)

   The exemption takes effect from the date on which the notice was received by the FSCS, subject to COMP 13.3.6 R.1

A participant firm which is exempt under COMP 13.3.1 R must notify the FSCS in writing as soon as reasonably practicable if the conditions in COMP 13.3.1 R no longer apply.1

If a participant firm ceases to conduct business that could give rise to a protected claim by an eligible claimant and notifies the FSCS of this under COMP 13.3.1 R (1), it will be treated as a participant firm to which COMP 13.8.7 R applies until the end of the financial year of the compensation scheme in which the notice was given.1