Prudential Regulation Authority Rulebook

29.1

If the FSCS takes a transfer of rights from the compensation recipient or is otherwise subrogated to the rights of the compensation recipient, it must pursue all and only such recoveries as it considers are likely to be both reasonably possible and cost effective to pursue.

29.2

If the FSCS decides not to pursue such recoveries and a compensation recipient wishes to pursue those recoveries and so requests in writing, the FSCS must comply with that request and assign the rights back to the compensation recipient.