Changes to the Compensation rules are set out in CP12/7 (‘Financial Services Compensation Scheme: changes to the Compensation sourcebook’).The proposals are to enable the FSCS to handle claims in a more streamlined way.
One change is to the eligibility criteria. Unlike ‘eligible complainants’ (FOS), the term ‘eligible claimant’ (FSCS) can be applied to both professional clients and retail clients. COMP 4.2 sets out a list of persons not eligible to claim under the FSCS. It is proposed to remove from the list (i.e. that they willbe eligible to claim under the FSCS) certain persons, including directors and managers of the relevant person in default (and close relatives) and those who have contributed to the default.
Chapter 3 of CP12/7 addresses issues relevant to insurance.
Rule changes can be found in Appendix 1 of the consultation paper.
