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 12.2 Quantification: general

COMP 12.2.1AR

11The amount of compensation payable to the claimant in respect of any type of protected claim is the amount of his overall net claim against the relevant person (or, where applicable, a successor)7 at the quantification date and any reference in COMP to overall claim means "overall net claim"7.

COMP 12.2.2R

COMP 12.2.1AR8 is, however, subject to the other provisions of COMP, in particular those rules that set limits on the amount of compensation payable for various types of protected claim. The limits are set out in COMP 10.

COMP 12.2.3G

Where a liability of a relevant person (or, where applicable, a successor)7 to an eligible claimant could fall within more than one type of claim protected by the compensation scheme whether under the rules of the FCA8 (see COMP 5.2.1 R) or of the PRA8, for example a claim in connection with money held by a8 MiFID investment firm2 that is also a credit institution, the FSCS should seek to ensure that the claimant does not receive any further compensation payment from the FSCS in cases where the claimant has already received compensation from the FSCS in respect of that claim.

2

Overall net claim

COMP 12.2.4R

If the claimant has an ICD claim against a pre-exit incoming EEA firm which is a MiFID investment firm9 or, where applicable, a successor of such a firm, and the act or omission giving rise to the ICD claim arose before IP completion day10, the FSCS must take account of the liability of the EEA State compensation scheme in calculating the compensation payable by the FSCS. For the purposes of applying this rule, “ICD claim” and “MiFID investment firm” have the meaning they had immediately before IP completion day109.

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COMP 12.2.5G

For the different categories of protected claim, see COMP 5 and COMP 10.2.3 R.

COMP 12.2.6G

In calculating the claimant's overall claim5, the FSCS may rely, to the extent that it is relevant, on any determination by:

  1. (1)

    a court of competent jurisdiction;

  2. (2)

    a trustee in bankruptcy;

  3. (3)

    a liquidator;

  4. (4)

    any other recognised insolvency practitioner;

and on the certification of any net sum due which is made in default proceedings of any exchange or clearing house.

Payments to the claimant5

COMP 12.2.7AR

11The FSCS must take into account any payments to the claimant (including amounts recovered by the FSCS on behalf of the claimant) made by the relevant person (or, where applicable, a successor)7 or the FSCS or any other person, including any payment made by the FSCS under the PRA’s rules,8 if that payment is connected with the relevant person's (or, where applicable, a successor's)7 liability to the claimant in calculating the claimant's overall claim.

Time for calculation of compensation due to the claimant5

COMP 12.2.8R

1The FSCS must calculate the amount of compensation due to the claimant as soon as reasonably possible after it is satisfied that the conditions in COMP 3.2.1 R have been met.

Settlement of claims

COMP 12.2.10R
  1. (1)

    6The FSCS may pay compensation without fully or at all investigating the eligibility of the claimant and/or the validity and/or amount of the claim notwithstanding any provision in this sourcebook or FEES 6 to the contrary, if in the opinion of the FSCS:

    1. (a)

      the costs of investigating the merits of the claim are reasonably likely to be disproportionate to the likely benefit of such investigation; and

    2. (b)

      (as a result or otherwise) it is reasonably in the interests of participant firms to do so.

  2. (2)

    This rule does not apply with respect to claims that are excluded by article8 3 of the Investor Compensation Directive.