COMP 14.4 Ending top-up cover
FSCS terminating top-up cover
The FSCS must terminate an incoming EEA firm's top-up cover where it is advised by the firm's Home State regulator or compensation scheme that the conditions in COMP 14.2.1 R are no longer satisfied.
If an incoming EEA firm which has top-up cover fails to observe any of the rules in this sourcebook which apply to participant firms, the FSCS must notify the FSA and the incoming EEA firm's Home State regulator.
In cases where COMP 14.4.2 R applies, the FSCS must co-operate with the incoming EEA firm's Home State regulator so that appropriate measures can be taken to ensure that the incoming EEA firm meets its obligations under this sourcebook.
If the incoming EEA firm fails to meet its obligations for a period of twelve months, the FSCS may terminate its top-up cover.
Resignation of an EEA firm from the compensation scheme
An incoming EEA firm which has top-up cover may terminate that top-up cover by giving six months' notice in writing to the FSCS.
Notice to customers and the FSCS1
When an incoming EEA firm's top-up cover comes to an end under COMP 14.4.1 R, COMP 14.4.4 R or COMP 14.4.5 R, it must:1
1- (1)
inform all the clients of its UK branch no later than six weeks after the date that its participation ends that they are no longer protected by the compensation scheme, and of the level of compensation which is then available to them; and1
- (2)
If an incoming EEA firm fails to comply with COMP 14.4.6R (1)1, the FSCS must inform the firm's Home State regulator of that fact.
1The FSCS must bring the ending of an incoming EEA firm's top-up cover to the attention of the incoming EEA firm's clients by means of a public notice.