This chapter applies to the FSCS.
Where a claimant has a protected claim arising out of the circumstances described in COMP 12.4.5 R, the FSCS must pay any compensation (and any recovery or other amount payable by the FSCS to the claimant) 2to:
the trustee of an occupational pension scheme; or
both (1) and (2);
and not to the claimant, unless exceptional circumstances apply.
7 COMP 3.2.2R permits the FSCS to pay compensation to a person who makes a claim on behalf of another person where certain conditions are satisfied. This includes payment to the personal representatives who make a claim on behalf of the deceased (see COMP 3.2.3G)(1)). COMP 11.2.2CR permits the FSCS to pay compensation to any other person who it considers should receive the compensation. For example, this may be to a funeral services provider directly where the funeral services provider has incurred expenses in providing funeral services under the funeral plan contract and is yet to be reimbursed.
by paying compensation directly into an existing deposit account of (or for the benefit of) the claimant, or as otherwise identified by (or on behalf of) the claimant, with an authorised person (but before doing so the FSCS must take such steps as it considers appropriate to verify the existence of such an account and to give notice to the claimant of its intention to exercise this power); and/or6
If the FSCS is satisfied that in principle compensation is payable in connection with any protected claim, but considers that immediate payment in full would not be prudent because of uncertainty as to the amount of the claimant's overall claim3, it may decide to pay an appropriate lesser sum in final settlement, or to make payment on account.1
1 COMP 11.2.4 R applies to compensation payable in connection with any protected claim. It would, for example, apply to the situation where the FSCS considers it imprudent to make a payment in full because of uncertainty as to the value a court might attribute to a bonus provided for under a long-term insurance contract. In such circumstances the FSCS may make payment of compensation on account to the policyholder in respect of benefits under the contract the value of which is not uncertain.
The FSCS may pay interest on the compensation sum in such circumstances as it considers appropriate.
4Where the FSCS considers that the conditions in COMP 11.2.4R are satisfied but, in relation to a class of claim, in order to provide fair compensation for the generality of such claims it would be appropriate to take the approach in (1) and (2) rather than pay an appropriate lesser sum in final settlement or make a payment on account, it may for that class of claim:
receive whether by assignment, transfer or operation of law the whole or any part of a claimant's rights against the relevant person (or, where applicable, a successor)5, or against any third party, or both on such terms as the FSCS thinks fit; and
disregard the value of the rights so received in determining the claimant's overall claim.
4Factors that the FSCS may take into account when considering taking the approach in COMP 11.2.9R (1) and COMP 11.2.9R (2) include whether the amount of claimants' overall claims are likely to be assessed within a reasonable time frame, the circumstances of the claimants, the circumstances of the claims and the nature of the products to which the claims relate.