COMP 14.4 Ending top-up cover

FSCS terminating top-up cover

COMP 14.4.1R

The FSCS must terminate an incoming EEA firm's top-up cover where it has ascertained2 that the conditions in COMP 14.2.1 R are no longer satisfied.

2
COMP 14.4.2R

If an incoming EEA firm which has top-up cover fails to observe any of the rules in this sourcebook which apply to participant firms, the FSCS must notify the appropriate regulator and the incoming EEA firm's Home State regulator.

COMP 14.4.3R

In cases where COMP 14.4.2 R applies, the FSCS must co-operate with the incoming EEA firm's Home State regulator so that appropriate measures can be taken to ensure that the incoming EEA firm meets its obligations under this sourcebook.

COMP 14.4.4R

[deleted]3

COMP 14.4.4AR

3If the incoming EEA firm fails to meet its obligations for a period of twelve months following the notice, the FSCS may, subject to obtaining the consent of the incoming EEA firm's Home State regulator, terminate its top-up cover. Notwithstanding the termination of top-up cover under this rule, cover will continue for protected investment business transacted before that termination.

Resignation of an EEA firm from the compensation scheme

COMP 14.4.5R

An incoming EEA firm which has top-up cover may terminate that top-up cover by giving six months' notice in writing to the FSCS.

Notice to customers and the FSCS1

COMP 14.4.6R

When an incoming EEA firm's top-up cover comes to an end under COMP 14.4.1 R, COMP 14.4.4 R or COMP 14.4.5 R, it must:1

1
  1. (1)

    inform all the clients of its UK branch no later than six weeks after the date that its participation ends that they are no longer protected (or, if appropriate, of the more limited protection provided)2 by the compensation scheme, and of the level of compensation which is then available to them; and1

  2. (2)

    within two months, notify the FSCS whether it has done so.1

COMP 14.4.7R

If an incoming EEA firm fails to comply with COMP 14.4.6R (1)1, the FSCS must inform the firm's Home State regulator of that fact.

1
COMP 14.4.8R

The FSCS must bring the ending of an incoming EEA firm's top-up cover to the attention of the incoming EEA firm's clients by means of a public notice.