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COMP 4.2 Who is eligible to benefit from the protection provided by the FSCS?

COMP 4.2.1R

Unless COMP 4.2.3 R applies, an eligible claimant is any person who at any material time:

  1. (1)

    did not come within COMP 4.2.2 R; or

  2. (2)

    did come within COMP 4.2.2 R, but satisfied the relevant exception in COMP 4.3 or COMP 4.45.

Persons not eligible to claim unless COMP 4.3 applies (see COMP 4.2.1R)

COMP 4.2.2R

This table belongs to COMP 4.2.1R

(1)

Firms (other than a sole trader firm;4 a credit union;4 a trustee of a stakeholder pension scheme (which is not an occupational pension scheme)2 or personal pension scheme; a firm carrying on the regulated activity of operating, or winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme;4 or a small business; in each case,4whose claim arises out of a regulated activity for which they do not have a permission)

(2)

Overseas financial services institutions

(3)

Collective investment schemes, and anyone who is the operator or depositary of such a scheme.9

9

(4)

Pension and retirement funds, and anyone who is a trustee of such a fund. However, this exclusion does not apply to:2

2

(a)

a trustee of a personal pension scheme or a stakeholder pension scheme (which is not an occupational pension scheme); or2

(b)

a trustee of 11an occupational pension scheme 11insofar as members’ benefits are money-purchase benefits; or 11

2

11(c)

11insofar as members’ benefits are not money-purchase benefits, a trustee of an occupational pension scheme of an employer which is not a large company, large partnership or large mutual association.

(5)

Supranational institutions, governments, and central administrative authorities

(6)

Provincial, regional, local and municipal authorities

(7)

Directors of the relevant person in default11 or, in respect of a claim against a successor in default, directors of any successor or directors of the relevant person11. However, this exclusion does not apply if:

7

11

11

11(a)

(i)

the relevant person in default is a mutual association which is not a large mutual association11 and 11the directors do not receive a salary or other remuneration for services performed by them for the relevant person in default; or 11

(ii)

11in respect of a claim against a successor in default, the relevant person or a successor, to whichever the directorship relates, is a mutual association12 which is not a large mutual association and the directors do not receive a salary or other remuneration for services performed by them for the relevant person or a successor, as applicable; or11

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(b)

11(i)

the relevant person in default is a credit union; or

11(ii)

11in respect of a claim against a successor in default, the relevant person or a successor, to whichever the directorship relates, is a credit union.

(8)

[deleted]7

7

(9)

Bodies corporate in the same group as the relevant person in default or, in respect of a claim against a successor in default, bodies corporate in the same group as a successor or the relevant person, as applicable, 11unless that body corporate is:4

4

(a)

a trustee of11 a stakeholder pension scheme (which is not an occupational pension scheme) or a personal pension scheme (but in each case if the trustee is a firm it will only be an eligible claimant if its claim arises out of a regulated activity for which it does not have a permission); or11

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11

11

6

11

11

6

11

11

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11(aa)

11(if the claim is with respect to a long-term insurance contract) a trustee of an occupational pension scheme; or

11(ab)

11(if the claim is not with respect to a long-term insurance contract), a trustee of:

11(i)

11an occupational pension scheme in relation to members’ benefits which are money-purchase benefits; or

11(ii)

11(unless (i) applies) an occupational pension scheme of an employer which is not a large company, large partnership or large mutual association; or

(b)6

carrying on the regulated activity of operating or winding up a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme.

(10)

[deleted]7

7

(11)

[deleted]7

7

(12)

Persons who, in the opinion of theFSCS, are responsible for, or have contributed to, the relevant person's 11(or, where applicable, a successor’s) default

(13)

Large companies

10

(14)

Large partnerships

(15)

Persons whose claim arises from transactions in connection with which they have been convicted of an offence of money laundering.

(16)

Persons whose claim arises under the Third Parties (Rights against Insurers) Act 1930

(17) 1

Where the claim is in relation to a protected contract of insurance or protected non-investment insurance mediation, body corporate, partnerships, mutual associations and unincorporated associations which are not small businesses.18

8(18)

Alternative investment funds, and anyone who is the AIFM or depositary of an alternative investment fund.

10(19)

Large mutual associations

COMP 4.2.3R

A person who is a small business is an eligible claimant in respect of a relevant general insurance contract entered into before commencement only if the person is a partnership.