COMP 9.2 When must compensation be paid?

9The FSCS must pay a claim as soon as reasonably possible after:

1. (1)

   it is satisfied that the conditions in COMP 3.2.1 R have been met; and

2. (2)

   it has calculated the amount of compensation due to the claimant;

   and in any event within:

3. (3)

   three months of that date, unless the FCA has granted the FSCS an extension, in which case payment must be made no later than six months from that date.

The FSCS may postpone paying compensation if:

1. (1)

   in the case of a claim against a relevant person who is an appointed representative, the FSCS considers that the claimant should make and pursue an application for compensation against the appointed representative's relevant principal; or

2. (2)

   in the case of a claim relating to protected investment business which is not an ICD claimor a claim relating to protected home finance mediation4, the FSCS considers that the claimant should first exhaust his rights against the relevant person or any third party, or make and pursue an application for compensation to any other person; or1

   4
3. (3)

   in the case of a claim relating to a protected contracts of insurance, the FSCS considers that the liability to which the claim relates or any part of the liability is covered by another contract of insurance with a solvent insurance undertaking, or where it appears that a person, other than the liquidator, may make payments or take such action to secure the continuity of cover as the FSCS would undertake; or

4. (4)

   the claim is one which falls within COMP 12.4.5 R or COMP 12.4.7 R and it is not practicable for payment to be made within the usual time limits laid out in COMP 9.2.1 R; or

5. (5)

   the claimant has been charged with an offence arising out of or in relation to money laundering, and those proceedings have not yet been concluded; or

6. (6)

   the claim relates solely to a bonus provided for under a protected contract of insurance the value of which the FSCS considers to be of such uncertainty that immediate payment of compensation in respect of that bonus would not be prudent and a court has yet to attribute a value to such bonus.32

Notwithstanding COMP 9.2.2 R(2), the FSCS may pay compensation to a claimant in respect of assets held by a relevant person if an insolvency practitioner has been appointed to the relevant person, and:

1. (1)

   the FSCS considers it likely that the insolvency practitioner would, in due course, return the assets to the claimant;

2. (2)

   the claimant has agreed to be compensated for the assets on the basis of the valuation provided by the FSCS; and

3. (3)

   the claimant has agreed, to the satisfaction of the FSCS, that his rights to the assets in respect of which compensation is payable should pass to it.