COMP 6.3A When is a successor in default?

1. (1)

   1A successor is in default if:

   1. (a)

      the FSCS has determined it to be in default under COMP 6.3A.2R, COMP 6.3A.3R, or COMP 6.3A.4R, unless the claim is within (b); or

   2. (b)

      (in relation to an ICD claim against a successor that is a MiFID investment firm):

      1. (i)

         the FCA has determined it to be in default under COMP 6.3A.2R; or

      2. (ii)

         a judicial authority has made a ruling that had the effect of suspending the ability of eligible claimants to bring claims against the successor, if that is earlier than (i).

2. (2)

   If a successor is in default in relation to an ICD claim within (1)(b) it is to be deemed to be in default in relation to any other type of protected claim.

The FSCS (or, where COMP 6.3A.1R(1)(b)(i) applies, the FCA) may determine a successor to be in default when it is, in the opinion of the FSCS (3or the FCA)3:

1. (1)

   unable to satisfy protected claims against it; or

2. (2)

   likely to be unable to satisfy protected claims against it.

The FSCS may determine a successor to be in default if it is satisfied that a protected claim exists (other than an ICD claim against a successor that is a MiFID investment firm), and the successor is the subject of one or more of the following proceedings in the United Kingdom (or of equivalent or similar proceedings in another jurisdiction):

1. (1)

   the passing of a resolution for a creditors' voluntary winding up; or

2. (2)

   a determination by the successor’s Home State regulator that the successor appears unable to meet claims against it and has no early prospect of being able to do so; or

3. (3)

   the appointment of a liquidator or administrator, or provisional liquidator or interim manager; or

4. (4)

   the making of an order by a court of competent jurisdiction for the winding up of a company, the dissolution of a partnership, the administration of a company or partnership, or the bankruptcy of an individual; or

5. (5)

   the approval of a company voluntary arrangement, a partnership voluntary arrangement, or an individual voluntary arrangement; or5

6. (6)

   5a moratorium under Part A1 of the Insolvency Act 1986 being in force.

The2 FSCS may2 determine that a successor to be2 in default if it is satisfied that a protected claim exists (other than an ICD claim against a successor that is an MiFID investment firm)2, and:

1. (1)

   the FSCS is satisfied that the successor cannot be contacted at its last place of business and that reasonable steps have been taken to establish a forwarding or current address, but without success; and

2. (2)

   there appears to the FSCS to be no evidence that the successor will be able to meet claims made against it.

For the purposes of sections 219(1A)(b) and (d) of the Act (Scheme manager's power to require information) whether a successor is unable or likely to be unable to satisfy claims is to be determined by reference to whether it is in default.