Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

COMP 10.2 Limits on compensation payable

COMP 10.2.1R

The limits on the maximum compensation sums payable by the FSCS for protected claims are set out in COMP 10.2.3 R.

COMP 10.2.2G

The limits apply to the aggregate amount of claims in respect of each category of protected claim that an eligible claimant has against the relevant person (or, where applicable, a successor)18. Consequently, a claimant who has, for example, a claim against a relevant person (or, where applicable, a successor)18 in connection with protected investment business of £70,00020, and a further such claim of £20,0006 , will only receive the £85,00020 limit.

612126666666661212
COMP 10.2.3R

Table Limits

This table belongs to COMP 10.2.1R

Type of claim

Level of cover

Maximum payment

1814

18

66

18

6817171717
18

18

1212

18

18

1212

18

18

18

1212

18

2

Protected investment business (except where the designated investment is a long-term care insurance contract that is a pure protection contract)20

100% of claim12

12

£85,00020

1212

20Protected investment business where the designated investment is a long-term care insurance contract that is a pure protection contract

100% of claim

Unlimited

Protected home finance mediation5

51

100% of claim12

12

£85,00020

12

Protected non-investment insurance distribution21

3

(1) where the claim is in respect of a liability subject to compulsory insurance: 100% of claim3

Unlimited3

(2) where the claim is in respect of:18

(a) a relevant omission; and18

(b) a professional indemnity insurance contract19, or would be in respect of a professional indemnity insurance contract19, if the insurance contract had been effected:18

100% of claim18

Unlimited18

(3) where the claim is:18

(a) in respect of a relevant omission;18

(b) in respect of a relevant general insurance contract or would be in respect of a relevant general insurance contract if the insurance contract had been effected; and18

(c) arises from the death or incapacity of the policyholder owing to injury, sickness or infirmity:18

100% of claim18

Unlimited18

(4) where the claim is in respect of:

(a) a relevant omission; and

(b) a pure protection contract, or would be in respect of a pure protection contract if the insurance contract had been effected:

100% of claim18

Unlimited18

(5) 18In all other cases: 90% of claim123

12

Unlimited3

19Protected debt management business

100% of claim

£85,00020

COMP 10.2.4G

COMP 12 sets out the rules the FSCS will follow when calculating the amount of compensation payable.

COMP 10.2.5G

COMP 12.4.4R includes further limits relating to certain claims against pre-IP completion day incoming EEA firms24, where the act or omission giving rise to the claim arose before IP completion day2322. These reflect the Investor Compensation Directive, which will continue to apply to EEA State compensation schemes after IP completion day23, under which compensation may be payable by the pre-IP completion day incoming EEA firm’s EEA State compensation scheme24.

1818227718777718

Claims in cases where there is a successor

COMP 10.2.5AR

18No claimant shall be eligible to make a claim under the compensation scheme in respect of both the relevant person and a successor arising from the same act or omission by the relevant person.25

COMP 10.2.6R

[deleted]2

COMP 10.2.7R

[deleted]2

Claims arising under COMP 3.2.4 R4

COMP 10.2.9R

4If a firm has a claim under COMP 3.2.4 R, the FSCS must treat the share of the shortfall of each customer as if it were a protected claim for the purposes of calculating the limits of compensation payable, within COMP 10.2, in relation to that customer.

COMP 10.2.10R

[deleted]

COMP 10.2.11R

[deleted]

14
COMP 10.2.12R

[deleted]

COMP 10.2.13G

[deleted]

Claims in cases where a principal and its appointed representative are both in default

COMP 10.2.14R

25No claimant shall be eligible to make a claim under the compensation scheme in respect of both a principal and its appointed representative arising from the same act or omission by the appointed representative.