This chapter applies to the FSCS.
In order to carry out its functions and put into effect the provisions set out in COMP 3 - COMP 14 (which deal with determining whether compensation is payable, calculating the amount of compensation that should be paid, and making levies on firms), the FSCS needs to have a variety of powers. The purpose of this chapter is to set out these powers, and the restrictions upon them.
The FSCS must administer the compensation scheme in accordance with the rules in this sourcebook and any other rules prescribed by law to ensure that the compensation scheme is administered in a manner that is procedurally fair and in accordance with the European Convention on Human Rights.
The FSCS may:
pay compensation to eligible claimants or secure continuity of insurance for eligible claimants when a relevant person is unable or likely to be unable to meet claims against it in accordance with the sourcebook; and
make levies on participant firms, in accordance with FEES 6 (Financial Services Compensation Scheme Funding)1, to enable it to pay compensation, secure continuity of insurance, or meet the costs of discharging its functions under this sourcebook.
1The FSCS must publish information for claimants and potential claimants on the operation of the compensation scheme.
The FSCS may agree to pay the reasonable costs of an eligible claimant bringing or continuing insolvency proceedings against a relevant person (whether those proceedings began before or after a determination of default), if the FSCS is satisfied that those proceedings would help it to discharge its functions under the requirements of this sourcebook.
The FSCS must make and publish an annual report on the discharge of its functions (section 218 of the Act (Annual report)).
5The FSCS must have regard to the need to use its resources in the most efficient and economic way in carrying out its functions under the requirements of this sourcebook.
The FSCS must take appropriate steps to ensure that potential claimants are informed of how they can make a claim for compensation as soon as possible after a determination has been made that a relevant person is in default, whether by the FSCS or the appropriate regulator.
The FSCS must put in place and publish procedures which satisfy the minimum requirements of procedural fairness and comply with the European Convention on Humans Rights for the handling of any complaints of maladministration relating to any aspect of the operation of the compensation scheme.
2The appropriate regulator will inform the FSCS if it detects problems in a firm that is likely to give rise to the intervention of the FSCS.
[Note: article 10(1), part of last sub-paragraph of the Deposit Guarantee Directive]
[Note: article 10(1), part of last sub-paragraph of the Deposit Guarantee Directive]
