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COMP 9.2 When must compensation be paid?

COMP 9.2.1R

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COMP 9.2.1AR

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COMP 9.2.1BR

9The FSCS must pay a claim as soon as reasonably possible after:

  1. (1)

    it is satisfied that the conditions in COMP 3.2.1 R have been met; and

  2. (2)

    it has calculated the amount of compensation due to the claimant;

    and in any event within:

  3. (3)

    three months of that date, unless the FCA has granted the FSCS an extension, in which case payment must be made no later than six months from that date.

COMP 9.2.2R

The FSCS may postpone paying compensation if:

  1. (1)

    in the case of a claim against a relevant person who is an appointed representative, the FSCS considers that the claimant should make and pursue an application for compensation against the appointed representative's relevant principal; or

  2. (2)

    in the case of a claim relating to protected investment business which is not an ICD claim, a claim 6 relating to protected home finance mediation4, a claim relating to protected non-investment insurance distribution, a claim relating to protected debt management business or a claim relating to protected funeral plan business7, the FSCS considers that the claimant should first exhaust their 7 rights against the relevant person 5(or, where applicable, a successor) 5or any third party, or make and pursue an application for compensation to any other person; or1

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  3. (3)

    [deleted] 5

  4. (4)

    the claim is one which falls within COMP 12.4.5 R or COMP 12.4.7 R and it is not practicable for payment to be made within the usual time limits laid out in COMP 9.2.1 R; or

  5. (5)

    the claimant has been charged with an offence arising out of or in relation to money laundering, and those proceedings have not yet been concluded; or85.5

  6. (6)

    [deleted] 5

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  7. (7)

    it or an insolvency practitioner appointed to the relevant person (or, where applicable, a successor) is seeking to secure continuity of the relevant funeral plan contract.8

COMP 9.2.3R

Notwithstanding COMP 9.2.2 R(2), the FSCS may pay compensation to a claimant in respect of assets held by a relevant person 5(or, where applicable, a successor) if an insolvency practitioner has been appointed to the relevant person (or, where applicable, a successor)5, and:

  1. (1)

    the FSCS considers it likely that the insolvency practitioner would, in due course, return the assets to the claimant;

  2. (2)

    the claimant has agreed to be compensated for the assets on the basis of the valuation provided by the FSCS; and

  3. (3)

    the claimant has agreed, to the satisfaction of the FSCS, that his rights to the assets in respect of which compensation is payable should pass to it.