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COMP 14.2 Obtaining top-up cover

COMP 14.2.1R

An incoming EEA firm may, by notice in writing to the FSCS, elect to receive top-up cover from the compensation scheme if it falls within one of the categories prescribed in regulation 3 of the Electing Participants Regulations (Persons who may elect to participate).

COMP 14.2.2R

An election under COMP 14.2.1 R takes effect on the date when the FSCS notifies the incoming EEA firm that its election has been accepted.

COMP 14.2.3G

A notice under COMP 14.2.1 R should include details confirming that the incoming EEA firm falls within a prescribed category. In summary:

  1. (1)

    6the firm must be:

    6
    1. (a)

      a credit institution; or

    2. (b)

      an IMD insurance intermediary; or

    3. (c)

      a MiFID investment firm; or

    4. (d)

      a UCITS management company that carries on the activities of managing investments (other than collective portfolio management), advising on investments or safeguarding and administering investments;

    5. (e)

      an AIFM that carries on AIFM management functions for an unauthorised AIF; or7

    6. (f)

      an AIFM that provides the services in article 6(4) of AIFMD;7

    7. (g)

      an MCD mortgage credit intermediary8

    36646
  2. (2)

    the firm must have established a branch in the United Kingdom in the exercise of an EEA right; and

  3. (3)

    the scope and/or5 level of cover provided by the firm's Home State compensation scheme must be less than that provided by the compensation scheme.1

COMP 14.2.4R

When the FSCS accepts an application, it must allocate the incoming EEAfirm to the contribution group (or groups) which seems to the FSCS to be most appropriate, taking into account the nature of the business for which the incoming EEA firm is seeking cover from the compensation scheme.

COMP 14.2.5R

The FSCS must put in place and publish procedures to enable an appeal by an incoming EEA firm against a rejection by the FSCS of an election to receive top-up cover or a decision to allocate an incoming EEA firm, once the firm's election has been accepted, to a particular contribution group. Such procedures must satisfy the minimum requirements of procedural fairness and comply with the European Convention on Human Rights.