COMP 6.2 Who is a relevant person?
A relevant person is a person who was, at the time the act or omission giving rise to the claim against it took place:
- (1)
a participant firm; or
- (2)
an appointed representative of a participant firm.
13The FSCS may pay compensation in respect of the activities of a relevant person:
- (1)
(if it was a firm) whether or not it was acting within the scope of its permission;
- (2)
(if it was an appointed representative) whether or not it was acting within the scope of the business for which its principal had accepted responsibility;
- (3)
(if it was a recognised investment exchange) whether or not it was acting in accordance with any recognition requirements resulting from section 286 of the Act and relating to the regulated activity of operating a multilateral trading facility or operating an organised trading facility.
[Note: sections 39(3) and 213(3)(a) of the Act]
A pre-IP completion day incoming EEA firm12 may be a participant firm in respect of acts or omissions before IP completion day11that give rise to a claim against it.
9A TP firm to which regulation 8 or 11 of the EU Exit Passport Regulations applies, that is not to be regarded as a relevant person under section 213(9A) of the Act (as inserted by regulation 24 of the EU Exit Passport Regulations) is not a participant firm. A TP firm to which regulation 28 or 34 of the EU Exit Passport Regulations applies, that is not to be regarded as a relevant person under section 213(9A) of the Act (as inserted by regulation 70 of the EU Exit Passport Regulations) is not a participant firm. For the purposes of the FCA’s compensation rules, this means that most (but not all) TP firms operating in the UK without an establishment are not participant firms.12
10