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COMP 10.1 Application and Purpose


COMP 10.1.1 R

This chapter applies to the FSCS.

COMP 10.1.2 G

It is also relevant to claimants.


COMP 10.1.3 G

In most cases it is appropriate for there to be a limit on the amount of compensation payable by the FSCS and that there should be some part of the claim which is not compensatable and for which the claimant must bear the loss. The purpose of this chapter is to set these limits out.

COMP 10.1.4 G


COMP 10.2 Limits on compensation payable

COMP 10.2.1 R

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

COMP 10.2.2 G

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. Consequently, a claimant who has, for example, a claim against a relevant person in connection with protected investment business of £40,000126, and a further such claim of £20,0006 , will only receive the £50,000 limit.12

6 12 6 6 6 6 6 6 6 6 12
COMP 10.2.3 R

Table Limits

This table belongs to COMP 10.2.1R

Type of claim

Level of cover

Maximum payment

Protected deposit or protected dormant account14

100% of claim 6



[Note: articles 7(1a) and 7(1b)17 of the Deposit Guarantee Directive]

6 8 17 17

Protected contract of insurance when the contract is a relevant general insurance contract

(1) Where the claim is in respect of a liability subject to compulsory insurance : 100% of claim 12



(2) In all other cases: 90% of claim 12



Protected contract of insurance when the contract is a long-term insurance contract

At least 90% of claim as determined in accordance with COMP 12 12


Unlimited 2

Protected investment business

100% of claim 12


£50,000 12


Protected home finance mediation 5 1


100% of claim 12


£50,000 12

Protected non-investment insurance mediation 3

(1) where the claim is in respect of a liability subject to compulsory insurance : 100% of claim 3

Unlimited 3

(2) In all other cases: 90% of claim 12 3


Unlimited 3

COMP 10.2.4 G

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

COMP 10.2.5 G

COMP 12.4.1 R and COMP 12.4.4 R include further limits relating to Deposit Guarantee Directive claims 7and ICD claims against certain incoming EEA firms. These reflect the Deposit Guarantee Directive7 and Investor Compensation Directive/s,7 under which compensation may be payable by the incoming EEA firm's Home State compensation scheme.

7 7 7

Continuity of insurance cover

COMP 10.2.6 R


COMP 10.2.7 R


Claims arising under COMP 3.2.4 R4

COMP 10.2.9 R

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 10.2.10 R


COMP 10.2.11 R


14Claims in respect of protected dormant accounts

COMP 10.2.12 R


COMP 10.2.13 G