COMP 4.2 Who is eligible to benefit from the protection provided by the FSCS?

(1)

Firms (other than a sole trader firm;4 a credit union;4 a trustee of a stakeholder pension scheme (which is not an occupational pension scheme)2 or personal pension scheme; a firm carrying on the regulated activity of operating, or winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme;4 or a small business; in each case,4whose claim arises out of a regulated activity for which they do not have a permission)

(2)

Overseas financial services institutions

(3)

Collective investment schemes, and anyone who is the operator or trustee of such a scheme

(4)

Pension and retirement funds, and anyone who is a trustee of such a fund. However, this exclusion does not apply to:2

(a)

a trustee of a personal pension scheme or a stakeholder pension scheme (which is not an occupational pension scheme); or2

(b)

a trustee of a small self-administered scheme or an occupational pension scheme of an employer which is not a large company, large partnership or large mutual association.2

(5)

Supranational institutions, governments, and central administrative authorities

(6)

Provincial, regional, local and municipal authorities

(7)

Directors and managers of the relevant person in default. However, this exclusion does not apply if:

(a)

both of the following apply:

(i)

the relevant person in default is a mutual association which is not a large mutual association; and

(ii)

the directors and managers do not receive a salary or other remuneration for services performed by them for the relevant person in default, or

(b)

the relevant person in default is a credit union.

(8)

Close relatives of persons excluded by (7) above

(9)

Bodies corporate in the same group as the relevant person in default unless that body corporate is:4

(a)

a trustee of:6

(i)

a stakeholder pension scheme (which is not an occupational pension scheme) or a personal pension scheme (but in each case if the trustee is a firm it will only be an eligible claimant if its claim arises out of a regulated activity for which it does not have a permission);6

(ii)

(if the claim is with respect to a long-term insurance contract) a small self-administered scheme or an occupational pension scheme; or 6

(iii)

(if the claim is not with respect to a long-term insurance contract) a small self-administered scheme or an occupational pension scheme of an employer which is not a large company, large partnership or large mutual association; or6

(b)6

carrying on the regulated activity of operating or winding up a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme.

(10)

Persons holding 5% or more of the capital of the relevant person in default, or of any body corporate in the samegroup

(11)

The auditors of the relevant person in default, or of any body corporate in the same group as the relevant person in default, or any33 actuary appointed under SUP 4 (Actuaries) by 3 a friendly society or insurance undertaking in default

(12)

Persons who, in the opinion of theFSCS, are responsible for, or have contributed to, the relevant person's default

(13)

Large companies or large mutual associations

(14)

Large partnerships

(15)

Persons whose claim arises from transactions in connection with which they have been convicted of an offence of money laundering.

(16)

Persons whose claim arises under the Third Parties (Rights against Insurers) Act 1930

(17) 1

Where the claim is in relation to a protected contract of insurance or protected non-investment insurance mediation, body corporate, partnerships, mutual associations and unincorporated associations which are not small businesses.1