Transitional Provisions and Schedules

Part

COMP Compensation Sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 03/07/2024

Rulebook at: 28/02/2014

Transitional Provisions and Schedules

COMP TP 1

Transitional Provisions

COMP TP 1.1

Transitional Provisions Table

(1)

(2)

(3)

(4)

(5)

(6)

Material to which the transitional provision applies

Transitional Provision

Transitional provision: dates in force

Handbook Provisions : coming into force

COMP 5

Protected claims

Indefinitely

Commencement

(1)

A claim for a protected deposit or under a protected contract of insurance includes a claim in respect of an article 9 default, subject to (2)

(2)

A claim must be treated as a claim in relation to a protected contract of insurance under COMP 5.4.5 R if the conditions in article 9A or 10(1)(a)-(d) of the compensation transitionals order are satisfied.

Commencement but on 6 December 2006 for article 9A of the compensation transitionals order

(3)

A claim in connection with protected investment business includes a claim in respect of a pending application.

(4)

Where the claim is in respect of an article 9 default or a pending application, the FSCS must apply the rules of the relevant former scheme, as they applied to the default before commencement, unless (2) applies.

(5)

The rules of each investment business compensation scheme are amended so that references to the person managing the scheme are replaced by references to the FSCS.

(6)

The rules of the Friendly Societies Protection Scheme are amended so that:

(a)

references to the person managing the scheme are replaced by references to the FSCS; and

(b)

References to functions conferred upon the Friendly Societies Protection Scheme Board are replaced by references to functions conferred upon the FSCS.

(7)

Where the default occurs after commencement, a claim for a protected deposit includes a claim that arose before commencement in respect of:

(a)

a deposit within the meaning of the Banking Act 1987; and

(b)

a claim in respect of a protected investment within the meaning of section 27 of the Building Societies Act 1986.

(8)

Where the default occurs after commencement, a claim in connection with protected investment business includes a claim that could have been entertained under an investment business compensation scheme (provided that the person making the claim has not also made a pending application arising out of the same set of facts).

COMP 13.5 and COMP 13.6

Expired

COMP 13.4.6 R and COMP 13.6.7 R

Expired

COMP 13.5.8 R

Expired

COMP 6.2.1 R

Credit unions

Indefinitely

Commencement

In relation to a claim or potential claim referred to in (1) or (2), a relevant person is also any credit union which:

(1)

becomes unable, or is likely to become unable, to satisfy claims against it which relate to deposits which were accepted before 2 July 2002; or

(2)

(a)

has ceased to have Part 4A permission by virtue of article 3(4) of the Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002 (SI 2002/704) (failure to comply with a direction to re-apply for Part 4A permission); and

(b)

thereafter, becomes unable, or is likely to become unable, to satisfy claims against it which relate to deposits which were accepted on or after 2 July 2002 but before the date on which it ceased to have Part 4A permission.

COMP 6.2.1 R

In consequence of transitional provision 5R, compensation can be provided:

(a)

in respect of a credit union which is unable, or likely to become unable, to satisfy claims for protected deposits accepted before 2 July 2002; and

(b)

where a credit union has ceased to hold a Part 4A permission (because of failure to comply with a direction to re-apply for the Part 4A permission), for protected deposits accepted on or after 2 July 2002 but before the date at which it ceased to have the Part 4A permission.

COMP 6.2.1 R

In consequence of transitional provision 5R(1), a credit union becomes a relevant person in respect of deposits accepted before 2 July 2002.

Amendments introduced by the Compensation Sourcebook (Amendment No.2) Instrument 2003.

Provisions and definitions arising out of (2) only apply to defaults, or circumstances giving rise to arrangements made under COMP 3.3.1 R or to measures taken under COMP or to measures taken under COMP 3.3.3 R, occurring after the date in (6)

Indefinitely

1 December 2003

COMP 13.6.8 R

Expired

COMP 5.7.1 R, COMP 13.4.7 R and COMP 13.6.9 R

[deleted]

FEES 6.3.1 R, FEES 6.3.22 R, FEES 6.4.8 R, FEES 6.4.6 R, FEES 6.5.1 R and FEES 6.5.6 R

[deleted]

FEES 6.5.7R (4), FEES 6.3.22 R, FEES 6.4.6 R, FEES 6.4.8 R, FEES 6.5.1 R, and FEES 6.5.6 R

[deleted]

FEES 6.5.7R (4), FEES 6.5.10 R, and FEES 6.5.13R (2)

[deleted]

FEES 6.5.7R (5), FEES 6.5.11 R, and FEES 6.5.13R (2)

[deleted]

COMP 5.4.4 R (4)(a) and COMP 5.4.4 R (4)(b)

The changes to COMP 5.4.4 R (4) made in the Compensation Sourcebook (Amendment No 7) Instrument 2006 do not apply in relation to defaults declared before 6 June 2006.

Indefinitely

6 June 2006

COMP 10.2.3 R

The change to the limit for protected deposits made by the Compensation Sourcebook (Protected Deposits Limit) Instrument 2007 does not apply in relation to a claim against a relevant person that was in default before 1 October 2007.

From 1 October 2007 indefinitely

Amended with effect from 1 October 2007

Amendments introduced by the Compensation Sourcebook (Amendment No 8) Instrument 2008

Provisions and definitions arising out of (2) only apply to defaults on or occurring after 7 October 2008

From 7 October 2008 indefinitely

7 October 2008

COMP 10.2.3 R

The change to the limit for protected deposits made by the Compensation Sourcebook (Deposit Guarantee Schemes Directive Amendments) Instrument 2009 does not apply in relation to a claim against a relevant person that was in default before 30 June 2009.

From 30 June 2009 indefinitely

30 June 2009

Amendments to COMP 10.2.3 R introduced by the Financial Services Compensation Scheme (Limits Amendment) Instrument 2009

Provisions and definitions arising out of (2) only apply to defaults on or occurring after 1 January 2010.

From 1 January 2010 indefinitely

1 January 2010

COMP 4.3.1 R

The change to the eligibility requirements for claimants for protected deposits made by the Financial Services Compensation Scheme (Banking Compensation Reform) Instrument 2009 does not apply in relation to a claim against a relevant person that was in default before 1 August 2009.

From 1 August 2009 indefinitely

1 August 2009

COMP 17.3 and COMP 17.2.7 R

[deleted]

COMP 17.3

[deleted]

COMP 17.3.10 R and COMP 17.3.12 R

[deleted]

COMP 10.2.3 R

The change to the limit for protected deposits made by the Compensation Sourcebook (Deposit Guarantee Schemes Directive Amendments) (No 2) Instrument 2010 does not apply in relation to a claim against a relevant person that was in default before 31 December 2010.

From 31 December 2010 indefinitely

31 December 2010

COMP 12.2.1 R and COMP 12.2.6A R and the amendment of all references in COMP (other than in COMP 12.2.1 R and the heading in respect of COMP 12.2.4 R) to "overall net claim" to "overall claim"

The changes referred to in (2) made by the Financial Services Compensation Scheme (Banking Compensation Reform) Instrument 2009 do not apply in relation to a claim against a relevant person that was in default before 31 December 2010.

From 31 December 2010 indefinitely

From 31 December 2010

COMP 12.3.1 R and COMP 15.1.12 R

From 31 December 2010 indefinitely

From 31 December 2010

COMP 4.2.2 R(9)

The changes referred to in (2), made by the Compensation Sourcebook (Occupational Pension Scheme Trustees) Instrument 2011 do not apply in relation to a claim against a relevant person that was in default before 1 October 2011.

From 1 October 2011 indefinitely

From 1 October 2011

COMP 16.3

A Northern Ireland credit union need not comply with COMP 16.3 until 30 September 2013.

From 31 March 2012 until 30 September 2013

For Northern Ireland credit unions 31 March 2012

COMP 17

[deleted]

COMP 17.3 and COMP 17.2.7 R

[deleted]

COMP 17.3

[deleted]

COMP 17.3.10 R and COMP 17.3.12 R

[deleted]

Amendments introduced by Annex A and Part 1 of Annex B of the Compensation Sourcebook (Amendment No 9) Instrument 2012.

The changes referred to in (2) do not apply in relation to a claim against a relevant person that was in default before 1 October 2012. Notwithstanding the above:
(a) to the extent that the provisions changed apply to protected deposits, all the changes in (2); and
(b) the changes to COMP 12.2.10 R;
apply irrespective of when the default occurred.

From 1 October 2012 indefinitely

From 1 October 2012

Amendments introduced by the Compensation Sourcebook (Large unincorporated associations) Instrument 2013

The changes referred to in (2) do not apply in relation to a claim against a relevant person that was in default before 17 December 2013.

From 17 December 2013 indefinitely

From 17 December 2013.

COMP 17.2.1 R and COMP 17.2.3 R

The rules referred to in (2) only apply on or after 18 March 2014 in relation to changes to eligible claimants resulting from the Compensation Sourcebook (Large unincorporated associations) Instrument 2013.

From 17 December 2013 to 17 March 2014

16 December 2013

17/12/2013

COMP Sch 1

Record-keeping requirements

01/12/2004

COMP Sch 1.1

The aim of the guidance in the following able is to give the reader a quick overall view of the relevant record keeping requirements. The Rules listed below apply only to FSCS (the scheme manager).

It is not a complete statement of those requirements and should not be relied upon as it were.

01/04/2013

COMP Sch 1.2

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

FEES 6.3.14 R

FSCS funding

Full details of the movement of funds within sub-schemes.

Ongoing requirement.

N/A

[deleted]

04/10/2013

COMP Sch 2

Notification requirements

01/12/2004

COMP Sch 2.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant requirements for notification and reporting. In all cases, other than those concerning Chapters 13, 14 and 17 and the Transitional Provisions, the notification rules in COMP apply only to the FSCS (the scheme manager).

It is not a complete statement of those requirements and should not be relied on as if it were.

01/04/2013

COMP Sch 2.2

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

COMP 2.2.5G

Annual Report

Not specified in COMP - see Memorandum of Understanding (MoU) between each regulatorand FSCS

End of Financial Year

Not specified in COMP (see MoU)

COMP 2.2.7R

Default of relevant person

Not specified - although FSCS must take appropriate steps to ensure claimants are informed about how they can claim compensation

default of a relevant person

Not specified - but as soon as practicable after determining default

FEES 6.2.1 R

Right to exemption for specific costs and compensation costs levy

Notice that firm does not conduct business that could give rise to a claim on the FSCS and has no reasonable likelihood of doing so

If it does not, or if it ceases to, conduct business with persons eligible to claim on FSCS, unless it has already given such notice

None specified though exemption generally only takes effect from the date of receipt of notice by FSCS

FEES 6.2.4 R

Loss of right to seek exemption from specific costs & compensation costs levy

Statement that firm no longer qualifies for exemption because it carries on business with persons eligible to claim on FSCS

Firm loses the right to claim the exemption.

As soon as reasonably practicable

FEES 6.5.13 R

Levy base for participant firm

The contribution groups to which the participant firm belongs. The total amount of business (measured in accordance with the appropriate tariff bases, which it conducted as at 31 December of the previous year)

The end of the calendar year (the occasion of 31 December every year beginning with 31 December 2001)

By end February

FEES 6.7

Participant firms compensation levy for the financial year

Amount of levy payable by the participant firm

The decision by the FSCS that it must impose a levy

30 days before the levy is payable

COMP 14.2.1R

Application by eligible inward passporting EEA firm to obtain top-up cover into compensation scheme

That firm is qualifying incoming EEA firm. The sub-scheme(s) the firm wishes to participate in. Confirmation that the level or scope of cover offered by its home state scheme(s) is less than that available in the UK.

The firm's decision that it wishes to obtain top-up cover into the UK scheme.

N/A

COMP 14.4.5R

Termination of top-up cover

Statement that incoming EEA firm is terminating top-up cover

Decision by firm to resign from FSCS

6 months notice

COMP 14.4.6R

Termination of inward passporting EEA firm's top-up cover into compensation scheme

The firm's resignation from the compensation scheme and the level of compensation available to clients of the firm's UK branch following its decision to resign from FSCS

Termination of firm's top-up cover

No later than six weeks after the end of the firms participation in compensation scheme

COMP TP 29R(2) and COMP 17.2.7 R

Election or revocation of election that the electronic SCV rules do not apply.

See Matter to be notified

Immediately

COMP 17.2.7R (1)

Election that the electronic SCV rules do not apply.

See Matter to be notified

Immediately

COMP 17.2.7R (1A)

Revocation of election that the electronic SCV rules do not apply.

See Matter to be notified

Immediately

COMP 17.2.7R (2)

The firm has operated 5,000 or more accounts held by eligible claimants for two consecutive years, having previously operated less than 5,000

See Matter to be notified

Immediately

COMP 17.3.1 R

A firm must provide the PRA with an SCV implementation report and SCV report

See COMP 17.3.6R (1) or COMP 17.3.6R (2) as applicable and COMP 17.3.9R (1) or COMP 17.3.9R (2) as applicable.

Receipt of permission to accept deposits or obtaining top-up cover as applicable

Three months

COMP 17.3.2 R

A firm must provide the PRA with an SCV implementation report and SCV report

See COMP 17.3.6R (1) or COMP 17.3.6R (2) as applicable and COMP 17.3.9R (1) or COMP 17.3.9R (2) as applicable.

A material change in the firm's SCV system

Three months

COMP 17.3.4 R

A firm must provide the PRA with an SCV report

COMP 17.3.9R (1) or COMP 17.3.9R (2) as applicable.

Every four years (starting from 31 December 2010 or the date of receiving permission to accept deposits or in the case of an incoming EEA firm the date of obtaining top-up cover, whichever is later)

See Trigger Event

COMP TP 30 R (2) and COMP 17.2.7 R

Election or revocation of election that the electronic SCV rules do not apply

See Matter to be notified

Immediately

01/04/2013

COMP Sch 3

Fees and other required payments

01/12/2004

COMP Sch 3.1

The rules in FEES 6 give FSCS (the scheme manager) the power to raise levies on participant firms in order to meet its expenses. The rules in FEES 6 do not specify the amount of any levy but do specify how a participant firm's share of a levy is to be calculated and any limit on the amount leviable by the FSCS is a particular period.

01/04/2013

COMP Sch 6

Rules that can be waived

01/12/2004

COMP Sch 6.1B

As a result of section 138A of the Act (Modification or waiver of rules) the PRA has power to waive all its rules, other than rules made under section 137O (Threshold condition code) of the Act. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the PRA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

01/04/2013