Incoming EEA firms which are conducting regulated activities in the United Kingdom under a CRD4, IMD or5 MiFID3 passport are not required to participate in the compensation scheme in relation to those passported activities. They may apply to obtain the cover of, or 'top-up' into, the compensation scheme if there is no cover provided by the incoming EEA firm's Home State compensation scheme or if the level or scope of the cover is less than that provided by the compensation scheme. This is covered by COMP 14.2214535
If an incoming EEA firm "tops-up", and then becomes insolvent, the Home State compensation scheme will pay compensation for claims up to the limit and scope of the Home State compensation scheme, with the FSCS paying compensation for the additional amount in accordance with the provisions in this sourcebook.
6Incoming EEA firms which are passporting into the UK under an AIFMD passport, to manage an unauthorised AIF or to provide the services in article 6(4) of AIFMD, are not required to participate in the compensation scheme for those activities, but may choose to ‘top-up’ into the compensation scheme if they carry on those activities from a branch in the UK and there is no cover provided by the incoming EEA firm's Home State compensation scheme, or if the level or scope of the cover is less than provided by the compensation scheme.