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Application provision

7.1 This Chapter applies only to the FSCS.

7.1

03/07/2015

This Chapter applies only to the FSCS.

7.2

03/07/2015

The FSCS may pay compensation in any form and by any method (or any combination of them) that it determines is appropriate including, without limitation:

  1. (1) by paying the compensation (on such terms as the FSCS considers appropriate) to a DGS member or an incoming firm which agrees to become liable to the compensation recipient in a like sum;
  2. (2) by paying compensation directly into an existing deposit account of (or for the benefit of) the compensation recipient, with a DGS member or an incoming firm (but before doing so the FSCS must take such steps as it considers appropriate to verify the existence of such an account and to give notice to the depositor of its intention to exercise this power);
  3. (3) where two or more persons are absolutely entitled to a deposit, by accepting communications from and/or paying compensation to any one of those persons where this is in accordance with the terms and conditions for communications and withdrawals of the eligible deposit.

7.3

03/07/2015

This Chapter is subject to:

  1. (1) Chapter 6;
  2. (2) section 214B and section 214D of FSMA; and
  3. (3) section 61 of the Banking Act 2009.