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Application provision

1.1 This Part applies to the FSCS, and for the purposes of chapter 21, 22.6 - 22.8 and Annex 2, this Part also applies to participant firms and the Society.

16.1

03/07/2015

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

  1. (1) it is satisfied that the conditions in 3.1 have been met; and
  2. (2) it has calculated the amount of compensation due to the claimant;

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

16.2

03/07/2015

The FSCS may postpone paying compensation if:

  1. (1) it considers that the liability to which the claim relates or any part of the liability is covered by another contract of insurance with a solvent insurance undertaking (or where applicable, a member), or where it appears that a person, other than the liquidator, may make payments or take such action to secure the continuity of cover as the FSCS would undertake;
  2. (2) it is not practicable for payment to be made within the usual time limit laid out in 16.1;
  3. (3) 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; or
  4. (4) the claim relates solely to a bonus provided for under a protected contract of insurance the value of which the FSCS considers to be of such uncertainty that immediate payment of compensation in respect of that bonus would not be prudent and a court has yet to attribute a value to such bonus.