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Application provision

3.1 This Chapter applies only to the FSCS.

3.1

03/07/2015

This Chapter applies only to the FSCS.

3.2

03/07/2015

The FSCS shall pay compensation in respect of a protected dormant account if it is satisfied that the protected dormant account is a dormant account of a dormant account fund operator who is in default.

3.3

03/07/2015

A dormant account fund operator is in default if the FSCS has determined it to be in default under 3.4 or 3.5.

3.4

03/07/2015

The FSCS may determine a dormant account fund operator to be in default when it is, in the opinion of the FSCS or the PRA:

  1. (1) unable to satisfy protected dormant account claims against it; or
  2. (2) likely to be unable to satisfy protected dormant account claims against it.

3.5

03/07/2015

The FSCS may determine a dormant account fund operator to be in default if it is satisfied that a protected dormant account claim exists, and the dormant account fund operator is the subject of one or more of the following proceedings in the United Kingdom (or of equivalent or similar proceedings in another jurisdiction):

  1. (1) the passing of a resolution for a creditors' voluntary winding up;
  2. (2) a determination by the dormant account fund operator’s home state regulator that the dormant account fund operator appears unable to meet claims against it and has no early prospect of being able to do so;
  3. (3) the appointment of a liquidator or administrator, or provisional liquidator or interim manager;
  4. (3) the making of an order by a court of competent jurisdiction for the winding up of a company, the dissolution of a partnership, the administration of a company or partnership, or the bankruptcy of an individual;
  5. (4) the approval of a company voluntary arrangement, a partnership voluntary arrangement, or of an individual voluntary arrangement.

3.6

03/07/2015

For the purposes of sections 219(1A)(b) and (d) of FSMA whether a dormant account fund operator is unable or likely to be unable to satisfy claims shall be determined by reference to whether it is in default.