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COMP 5.1 Application and Purpose

Application

COMP 5.1.1 R

This chapter applies to the FSCS.

COMP 5.1.2 G

It is also relevant to claimants.

Purpose

COMP 5.1.3 G

The purpose of this chapter is to set out the various categories of claim for which compensation may be payable.

COMP 5.2 What is a protected claim?

COMP 5.2.1 R

A protected claim is:

  1. (1)

    a claim for a protected deposit (see COMP 5.3); or

  2. (2)

    a claim under a protected contract of insurance (see COMP 5.4); or

  3. (3)

    a claim in connection with protected investment business (see COMP 5.5); or3

  4. (4)

    a claim in connection with protected mortgage business (see COMP 5.6); or34

  5. (5)

    a claim in connection with protected non-investment insurance mediation (see COMP 5.7).42

COMP 5.2.2 G
  1. (5.2.2

    [deleted]2

    2. 1

COMP 5.5 Protected investment business

COMP 5.5.1 R

Protected investment business is:

  1. (1)

    designated investment business carried on by the relevant person with the claimant or as agent on his behalf;

  2. (2)

    the activities of the manager or trustee of an AUT, provided that the claim is made by a holder;

  3. (3)

    the activities of the ACD or depositary of an ICVC, provided that the claim is made by a holder;

provided that the condition in COMP 5.5.2 R is satisfied.

COMP 5.5.2 R

COMP 5.5.1 R only applies if the protected investment business was carried on from:

  1. (1)

    an establishment of the relevant person in the United Kingdom; or

  2. (2)

    a branch of a UK firm which is:

    1. (a)

      an ISD investment firm (including a credit institution which is an ISD investment firm), or

    2. (b)

      a UCITS management company established in another EEA State (but only in relation to managing investments (other than of a collective investment scheme), advising on investments or safeguarding and administering investments);

  3. and the claim is an ICD claim; or

  4. (3)

    both (1) and (2).1

COMP 5.6 1Protected mortgage business

COMP 5.6.1 R

Protected mortgage business is:

  1. (1)

    advising on regulated mortgage contracts; or

  2. (2)

    arranging (bringing about) regulated mortgage contracts; or

  3. (3)

    making arrangements with a view to regulated mortgage contracts; or

  4. (4)

    agreeing to carry on a regulated activity in (1) to (3); or

  5. (5)

    the activities of a mortgage lender which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts to which the arranger is a party);

provided that the condition in COMP 5.6.2 R is satisfied.

COMP 5.6.2 R

COMP 5.6.1 R applies only if the protected mortgage business was carried on by a relevant person:

  1. (1)

    with a customer who was a resident in the United Kingdom; or

  2. (2)

    from an establishment maintained by the relevant person (or its appointed representative) in the United Kingdom with a customer who was resident elsewhere in the EEA;

at the time the protected mortgage business was carried on.

COMP 5.7 2 1 1Protected non-investment insurance mediation

COMP 5.7.2 R

COMP 5.7.1 R only applies if the conditions in (1) and (2) are satisfied:3

1
  1. (1)

    the protected non-investment insurance mediation was carried on from:3

    3
    1. (a)

      an establishment of the relevant person in the United Kingdom; or3

    2. (b)

      a branch of a UK firm established in another EEA State in the exercise of an EEA right derived from the IMD; and3

  2. (2)

    the customer making the claim (or where COMP 3.2.4 R applies, the customer on behalf of whom a firm makes a claim) was in contact with:3

    3
    1. (a)

      a firm carrying on an insurance mediation activity in the United Kingdom; or3

    2. (b)

      a branch of a UK firm established in another EEA State which is carrying on an insurance mediation activity in the exercise of an EEA right derived from the IMD.3