192XC Disapplication or modification of rules in individual cases
(1) This section applies to a section 192XA rule if, or to the extent that, section 192XA rules provide for it to apply to the rule.
(2) The PRA may, on the application of or with the consent of a person who is subject to section 192XA rules, give the person a permission that enables the person—
(a) not to apply the section 192XA rule, or
(b) to apply the section 192XA rule with the modifications specified in the permission.
(3) The PRA may—
(a) give permission under this section subject to conditions, and
(b) revoke or vary permission under this section.
(1) This section applies if the PRA is satisfied that a company which is or has been a financial holding company or a mixed financial holding company (“the company”) has contravened a requirement imposed by—
(a) this Part;
(b) a direction given to the company by the PRA under section 192T;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ca) section 192XA rules; or
(d) the capital requirements regulation or an instrument made under that regulation.
(2) The PRA may impose a penalty of such amount as it considers appropriate on—
(a) the company; or
(b) any person who was knowingly concerned in the contravention.
(3) The PRA may, instead of imposing a penalty on a person, publish a statement censuring the person.
(4) The PRA may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 192Z.
(5) “The limitation period” means the period of 3 years beginning with the first day on which the PRA knew of the contravention.
(6) For this purpose the PRA is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.
(1) If a regulator proposes to take action against a person under section 192Y, it must give the person a warning notice.
(2) A warning notice about a proposal to impose a penalty must state the amount of the penalty.
(3) A warning notice about a proposal to publish a statement must set out the terms of the statement.
(4) If the regulator decides to take action against a person under section 192Y, it must give the person a decision notice.
(5) A decision notice about the imposition of a penalty must state the amount of the penalty.
(6) A decision notice about the publication of a statement must set out the terms of the statement.
(7) If the regulator decides to take action against a person under section 192Y, the person may refer the matter to the Tribunal.
After a statement under section 192Y(3) is published, the regulator must send a copy of the statement to—
(a) the person in respect of whom it is made; and
(b) any person to whom a copy of the decision notice was given under section 393(4).
192Z2 Directions and penalties: statement of policy
(1) The PRA must prepare and issue a statement of policy with respect to—
(a) the taking of measures, including directions, under section 192T;
(b) the imposition of penalties under section 192Y;
(c) the amount of penalties under that section.
(2) The PRA’s policy in determining what the amount of a penalty should be must include having regard to—
(a) the seriousness of the contravention;
(b) the extent to which the contravention was deliberate or reckless; and
(c) whether the person on whom the penalty is to be imposed is an individual.
(3) The PRA may at any time alter or replace a statement issued under this section.
(4) If a statement issued under this section is altered or replaced, the PRA must issue the altered or replacement statement.
(5) In imposing, or deciding whether to impose a penalty under section 192Y(2) in the case of any particular contravention, the PRA must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.
(6) A statement under this section must be published by the PRA in the way appearing to the PRA to be best calculated to bring it to the attention of the public.
(7) The PRA may charge a reasonable fee for providing a person with a copy of the statement published under this section.
(8) The PRA must, without delay, give the Treasury a copy of any statement which it publishes under this section.
192Z3 Statement of policy relating to directions: procedure
(1) Before issuing a statement of policy under section 192Z2, the PRA must—
(a) consult the FCA; and
(b) publish a draft of the proposed statement in the way appearing to the PRA to be best calculated to bring it to the attention of the public.
(2) The draft must be accompanied by notice that representations about the proposal may be made to the PRA within a specified time.
(3) Before issuing the proposed statement, the PRA must have regard to any representations made to it in accordance with subsection (2).
(4) If the PRA issues the proposed statement it must publish an account, in general terms, of—
(a) the representations made to it in accordance with subsection (2); and
(b) its response to them.
(5) If the statement differs from the draft published under subsection (2) in a way which is, in the opinion of the PRA, significant, the PRA must—
(a) consult the FCA again before issuing it; and
(b) in addition to complying with subsection (4), publish details of the difference.
(6) The PRA may charge a reasonable fee for providing a person with a draft published under subsection (1)(b).
(7) This section also applies to a proposal to alter or replace a statement.
194A Contravention by relevant EEA firm with UK branch of requirement under markets in financial instruments directive: appropriate regulator primarily responsible for securing compliance
194C Contravention by relevant EEA firm with UK branch of requirement in mortgages directive: appropriate regulator primarily responsible for securing compliance
194D Contravention by relevant EEA firm of requirement in insurance distribution directive: appropriate regulator primarily responsible for securing compliance
195 Exercise of power in support of overseas regulator.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) “An overseas regulator” means an authority in a country or territory outside the United Kingdom—
(a) which is a home state regulator; or
(b) which exercises any function of a kind mentioned in subsection (4).
(4) The functions are—
(a) a function corresponding to any function of either regulator under this Act;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) a function corresponding to any function exercised by the Secretary of State under the Companies Acts (as defined in section 2 of the Companies Act 2006);
(d) a function in connection with —
(i) the investigation of conduct of the kind prohibited by Part V of the Criminal Justice Act 1993 (insider dealing); or
(ii) the enforcement of rules (whether or not having the force of law) relating to such conduct;
(e) a function prescribed by regulations made for the purposes of this subsection which, in the opinion of the Treasury, relates to companies or financial services.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
195A Contravention by relevant EEA firm , EEAUCITS or EEAAIFM of directive requirements: home state regulator primarily responsible for securing compliance
195C Contravention by relevant EEA firm of requirement in insurance distribution directive: home state regulator primarily responsible for securing compliance
204A Meaning of “relevant requirement” and “appropriate regulator”
(1) The following definitions apply for the purposes of this Part.
(2) “Relevant requirement” means a requirement imposed—
(a) by or under this Act, ...
(aa) by regulations under section 11 of the Civil Liability Act 2018,
(aza) by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section 28B or the asset allocation requirement in section 28C,
(ab) by or under the Securitisation Regulations 2024,
(ac) by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2026,
(b) by a qualifying provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order , ...
(c) by the Alternative Investment Fund Managers Regulations 2013 , or
(d) by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.
(3) The PRA is “the appropriate regulator” in the case of a contravention of—
(a) a requirement that is imposed under any provision of this Act by the PRA;
(b) a requirement under section 56(6) where the authorised person concerned is a PRA-authorised person and the prohibition order concerned is made by the PRA;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the PRA only;
(e) a requirement under section 64B(2) or (5) where the conduct rules concerned are made by the PRA;
(f) a requirement under section 64C(1) to notify the PRA that disciplinary action has been taken.
(fa) a requirement imposed by regulation 8A(2) of the Securitisation Regulations 2024 where the institutional investor concerned is a PRA-authorised person;
(g) a requirement imposed by regulation 38 of the Securitisation Regulations 2024 on a PRA-authorised person in a case where the temporary prohibition imposed under regulation 37(1) or (2) of those Regulations was imposed by the PRA.
(3A) Either the PRA or the FCA is “the appropriate regulator” in the case of a contravention of—
(a) a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;
(b) a requirement under section 60A(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;
(ba) a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the FCA and the PRA;
(c) a requirement under section 63(2A) where the approval concerned is within section 63(1A)(a);
(d) a requirement under section 63E(1) where the authorised person concerned is a PRA-authorised person and the function concerned is of a description specified in rules made by the PRA;
(e) a requirement under section 63F(1), (2), (4), (6) or (7) where the authorised person concerned is a PRA-authorised person and the certificate concerned relates to a function of a description specified in rules made by the PRA.
(4) In the case of a contravention of a requirement that is imposed by a qualifying EU provision, “the appropriate regulator” for the purpose of any provision of this Part is whichever of the PRA or the FCA (or both) is specified by the Treasury by order in relation to the qualifying EU provision for the purposes of that provision of this Part.
(5) In the case of a contravention of a requirement where the contravention constitutes an offence, the “appropriate regulator” is whichever of the PRA or the FCA has power to prosecute the offence (see section 401).
(6) The FCA is “the appropriate regulator” in the case of a contravention of any other requirement imposed—
(a) by or under this Act;
(aza) by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section 28B or the asset allocation requirement in section 28C,
(aa) by regulations under section 11 of the Civil Liability Act 2018;
(ab) by or under the Securitisation Regulations 2024;
(ac) by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2026;
(b) by the Alternative Investment Fund Managers Regulations 2013; or
(c) by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.
(7) The Treasury may by order amend the provisions defining “the appropriate regulator”.
(1) If the appropriate regulator considers that an authorised person has contravened a relevant requirement imposed on the person, it may publish a statement to that effect.
(2) If the FCA considers that a person other than an authorised person has contravened a relevant Part 5A requirement imposed on the person, it may publish a statement to that effect.
(1) If the appropriate regulator considers that an authorised person has contravened a relevant requirement imposed on the person, it may impose on him a penalty, in respect of the contravention, of such amount as it considers appropriate.
(1A) If the FCA considers that a person other than an authorised person has contravened a relevant Part 5A requirement imposed on the person, it may impose on the person a penalty, in respect of the contravention, of such amount as it considers appropriate.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) A penalty under this section is payable to the regulator that imposed the penalty.
206A Suspending permission to carry on regulated activities etc
(1) If the appropriate regulator considers that an authorised person has contravened a relevant requirement imposed on the person, it may—
(a) suspend, for such period as it considers appropriate, any permission which the person has to carry on a regulated activity; or
(b) impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of a regulated activity by the person as it considers appropriate.
(1A) The power conferred by subsection (1) is also exercisable by the FCA if it considers that an authorised person has contravened a requirement imposed on the person by—
(a) the Payment Services Regulations 2017, or
(b) the Electronic Money Regulations 2011.
(1B) The power conferred by subsection (1) may not be exercised in relation to a contravention of a requirement imposed under section 122A, 122B, 122C, 122G, 122H, 122I, 122IA, 123A or 123B.
(2) In subsection (1)—
“ permission ” means any permission that the authorised person has, whether given (or treated as given) by the FCA or the PRA or conferred by any provision of this Act;
...
(3) The period for which a suspension or restriction is to have effect may not exceed 12 months.
(4) A suspension may relate only to the carrying on of an activity in specified circumstances.
(5) A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.
(6) The appropriate regulator may—
(a) withdraw a suspension or restriction; or
(b) vary a suspension or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.
(7) The power under this section may (but need not) be exercised so as to have effect in relation to all the regulated activities that the person concerned carries on.
(8) Any one or more of the powers under—
(a) subsection (1)(a) and (b) of this section, and
(b) sections 205 and 206,
may be exercised in relation to the same contravention.
206B Prohibition or restriction on carrying on of relevant designated activities
(1) If the FCA considers that a person carrying on a relevant designated activity has contravened a relevant Part 5A requirement imposed on the person in relation to that activity, it may—
(a) prohibit the person, for such period as it considers appropriate, from carrying on that activity, or
(b) impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of that activity by the person as it considers appropriate.
(2) A prohibition may relate only to the carrying on of an activity in specified circumstances.
(3) A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.
(4) The FCA may, on the application of the person to whom it relates—
(a) withdraw a prohibition or restriction, or
(b) vary a prohibition or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.
(5) The power under this section may, but need not, be exercised so as to have effect in relation to all the relevant designated activities that the person concerned carries on.
(6) Any one or more of the powers under—
(a) subsection (1)(a) and (b) of this section, and
(b) sections 205 and 206,
may be exercised in relation to the same contravention.
(1) If a regulator proposes—
(a) to publish a statement in respect of an authorised person (under section 205(1)), ...
(b) to impose a penalty on an authorised person (under section 206(1)), or
(c) to suspend a permission of an authorised person or impose a restriction in relation to the carrying on of a regulated activity by an authorised person (under section 206A),
it must give the authorised person a warning notice.
(1A) If the FCA proposes—
(a) to publish a statement in respect of a person under section 205(2),
(b) to impose a penalty on a person under section 206(1A), or
(c) to impose a prohibition or restriction on a person under section 206B,
it must give the person a warning notice.
(2) A warning notice about a proposal to publish a statement must set out the terms of the statement.
(3) A warning notice about a proposal to impose a penalty, must state the amount of the penalty.
(4) A warning notice about a proposal to suspend a permission or impose a prohibition or restriction must state the period for which the suspension , prohibition or restriction is to have effect.
(1) If a regulator decides—
(a) to publish a statement under section 205(1) (whether or not in the terms proposed), . . .
(b) to impose a penalty under section 206(1) (whether or not of the amount proposed), or
(c) to suspend a permission or impose a restriction under section 206A (whether or not in the manner proposed),
it must without delay give the authorised person concerned a decision notice.
(1A) If the FCA decides—
(a) to publish a statement in respect of a person under section 205(2),
(b) to impose a penalty on a person under section 206(1A), or
(c) to impose a prohibition or restriction on a person under section 206B,
it must without delay give the person a decision notice.
(2) In the case of a statement, the decision notice must set out the terms of the statement.
(3) In the case of a penalty, the decision notice must state the amount of the penalty.
(3A) In the case of a suspension , prohibition or restriction, the decision notice must state the period for which the suspension , prohibition or restriction is to have effect.
(4) If a regulator decides to—
(a) publish a statement in respect of an authorised person under section 205(1), . . .
(b) impose a penalty on an authorised person under section 206(1), or
(c) suspend a permission of an authorised person, or impose a restriction in relation to the carrying on of a regulated activity by an authorised person, under section 206A,
the authorised person may refer the matter to the Tribunal.
(5) If the FCA decides to—
(a) publish a statement in respect of a person under section 205(2),
(b) impose a penalty on a person under section 206(1A), or
(c) impose a prohibition or restriction on a person under section 206B,
the person may refer the matter to the Tribunal.
208A Applications under section 206B(4): procedure and right to refer to Tribunal
(1) This section applies to an application under subsection (4) of section 206B for the variation or withdrawal of a prohibition or restriction imposed under that section.
(2) If the FCA decides to grant the application, it must give the applicant written notice of its decision.
(3) If the FCA proposes to refuse the application, it must give the applicant a warning notice.
(4) If the FCA decides to refuse the application, it must give the applicant a decision notice.
(5) If the FCA gives the applicant a decision notice, the applicant may refer the matter to the Tribunal.
(1) After a statement under section 205(1) is published, the regulator concerned must send a copy of it to the authorised person and to any person on whom a copy of the decision notice was given under section 393(4).
(2) After a statement under section 205(2) is published, the FCA must send a copy of it to the person to whom the statement relates and to any person to whom a copy of the decision notice was given under section 393(4).
(1) Each regulator must prepare and issue a statement of its policy with respect to—
(a) the imposition of penalties, suspensions , prohibitions or restrictions under this Part;
(b) the amount of penalties under this Part; and
(c) the period for which suspensions , prohibitions or restrictions under this Part are to have effect.
(1A) Each regulator's policy with respect to the imposition of penalties, suspensions or restrictions under this Part must include policy with respect to their imposition in relation to conduct which constitutes or may constitute an offence by virtue of section 23(1A) (authorised persons carrying on credit-related regulated activities otherwise than in accordance with permission).
(2) A regulator's policy in determining what the amount of a penalty should be , or what the period for which a suspension , prohibition or restriction is to have effect should be, must include having regard to—
(a) the seriousness of the contravention in question in relation to the nature of the requirement contravened;
(b) the extent to which that contravention was deliberate or reckless; and
(c) whether the person against whom action is to be taken is an individual.
(3) A regulator may at any time alter or replace a statement issued by it under this section.
(4) If a statement issued under this section is altered or replaced by a regulator, the regulator must issue the altered or replacement statement.
(5) A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.
(6) A statement issued under this section by a regulator must be published by the regulator in the way appearing to the regulator to be best calculated to bring it to the attention of the public.
(7) In exercising, or deciding whether to exercise, its power under section 206 , 206A or 206B in the case of any particular contravention, a regulator must have regard to any statement published by it under this section and in force at the time when the contravention in question occurred.
(8) The regulator may charge a reasonable fee for providing a person with a copy of the statement.
(1) Before a regulator issues a statement under section 210, the regulator must publish a draft of the proposed statement in the way appearing to the regulator to be best calculated to bring it to the attention of the public.
(2) The draft must be accompanied by notice that representations about the proposal may be made to the regulator within a specified time.
(3) Before issuing the proposed statement, the regulator must have regard to any representations made to it in accordance with subsection (2).
(4) If the regulator issues the proposed statement it must publish an account, in general terms, of—
(a) the representations made to it in accordance with subsection (2); and
(b) its response to them.
(5) If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the regulator, significant, the regulator must (in addition to complying with subsection (4)) publish details of the difference.
(6) A regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
(7) This section also applies to a proposal to alter or replace a statement.
(1) The scheme manager” means the body corporate established by the Financial Services Authority under this section as originally enacted.
(2) The regulators must take such steps as are necessary to ensure that the scheme manager is, at all times, capable of exercising the functions conferred on it by or under this Part or Part 15A.
(3) The constitution of the scheme manager must provide for it to have—
(a) a chairman; ...
(aa) a chief executive ...; and
(b) a board (which must include the chairman and chief executive ) whose members are the scheme manager’s directors.
(4) The chairman, chief executive and other members of the board must be persons appointed, and liable to removal from office, by the regulators (acting, in the case of the chairman and the chief executive, with the approval of the Treasury).
(5) But the terms of their appointment (and in particular those governing removal from office) must be such as to secure their independence from the regulators in the operation of the compensation scheme.
(6) The scheme manager is not to be regarded as exercising functions on behalf of the Crown.
(7) The scheme manager’s ... officers and staff are not to be regarded as Crown servants.
(1) The regulators must by rules made in accordance with an order under subsection (1A) establish a scheme for compensating persons in cases where—
(a) relevant persons are unable, or likely to be unable, to satisfy claims against them, ...
(aa) relevant exchanges are unable, or likely to be unable, to satisfy claims made against them in connection with a regulated activity relating to a trading facility carried on by the exchange, or
(b) persons who have assumed responsibility for liabilities arising from acts or omissions of relevant persons or relevant exchanges (“successors”) are unable, or likely to be unable, to satisfy claims against the successors that are based on those acts or omissions.
(1A) The Treasury must by order specify—
(a) the cases in which the FCA may, or may not, make rules under subsection (1), and
(b) the cases in which the PRA may, or may not, make rules under that subsection.
(2) The rules (taken together) are to be known as the Financial Services Compensation Scheme (but are referred to in this Act as “the compensation scheme”).
(3) The compensation scheme must, in particular, provide for the scheme manager—
(a) to assess and pay compensation, in accordance with the scheme, to claimants in respect of claims made in connection with—
(i) a regulated activity carried on (whether or not with permission) by relevant persons; and
(ii) a regulated activity relating to a trading facility carried on (whether or not in accordance with any requirements relating to that activity resulting from section 286) by relevant exchanges; and
(b) to have power to impose levies for the purpose of meeting its expenses (including in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks)—
(i) on authorised persons, or any class of authorised person;
(ii) on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or any class of such exchanges; or
(iii) on authorised persons and on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or on any class of such persons and exchanges.
(4) The compensation scheme may provide for the scheme manager to have power to impose levies—
(a) on authorised persons, or any class of authorised person;
(b) on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or any class of such exchanges; or
(c) on authorised persons and on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or on any class of such persons and exchanges,
for the purpose of recovering the cost (whenever incurred) of establishing the scheme.
(5) In making any provision of the scheme by virtue of subsection (3)(b), the regulators must take account of the desirability of ensuring that the amount of the levies imposed on a particular —
(a) class of authorised person;
(b) class of recognised investment exchange carrying on a regulated activity relating to a trading facility; or
(c) class of authorised person and of recognised investment exchanges carrying on a regulated activity relating to a trading facility;
reflects, so far as is practicable, the amount of claims or recapitalisation payments within the meaning of section 214E, as the case may be, made, or likely to be made in respect of that class of person, exchange, or persons and exchanges.
(5A) The compensation scheme may not allow the scheme manager to impose levies on credit unions in relation to recapitalisation payments under section 214E.
(5B) In subsection (5A), the reference to “credit unions” is to credit unions within the meaning of—
(a) the Credit Unions Act 1979 (see section 31);
(b) the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)) (see Article 2).
(6) An amount payable to the scheme manager as a result of any provision of the scheme made by virtue of subsection (3)(b) or (4) may be recovered as a debt due to the scheme manager.
(7) Sections 214 to 217 make further provision about the scheme but are not to be taken as limiting the power conferred on the regulators by subsection (1).
(8) In those sections “specified” means specified in the scheme.
(9) In this Part (except in sections 219, 220 or 224) “relevant person” means a person who was—
(a) an authorised person at the time the act or omission giving rise to the claim against him , or against a successor falling within subsection (1)(b), took place; or
(b) an appointed representative at that time.
(10A) But a person is not to be regarded as a relevant person in relation to a regulated activity if, at that time, the person—
(a) was a Gibraltar-based person with a Schedule 2A permission to carry on the activity, and
(b) fell within a prescribed category, either generally or in relation to the activity.
(10B) Regulations prescribing a category of person for the purposes of subsection (10A) may, among other things, make provision by reference to—
(a) whether the activity is carried on through a branch in the United Kingdom;
(b) the level of protection provided by the compensation scheme and by any comparable scheme operating in Gibraltar.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12) In this Part (except in sections 220 and 224) “relevant exchange” means a body corporate or unincorporated association which was a recognised investment exchange carrying on a regulated activity relating to a trading facility at the time the act or omission giving rise to the claim against it, or against a successor falling within subsection (1)(b), took place.
(13) In this Part “regulated activity relating to a trading facility” means—
(a) the regulated activity of operating a multilateral trading facility; or
(b) the regulated activity of operating an organised trading facility.
(14) In this Part, “funeral plan contract” has the same meaning as in article 59(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
(1) The compensation scheme may, in particular, make provision—
(a) as to the circumstances in which a relevant person or relevant exchange is to be taken (for the purposes of the scheme) to be unable, or likely to be unable, to satisfy claims made against him or it;
(aa) as to the circumstances in which a successor falling within section 213(1)(b) is to be taken (for the purposes of the scheme) to be unable, or likely to be unable, to satisfy claims against the successor that are based on the acts or omissions of a relevant person or relevant exchange;
(b) for the establishment of different funds for meeting different kinds of claim;
(c) for the imposition of different levies in different cases;
(d) limiting the levy payable by a person in respect of a specified period;
(e) for repayment of the whole or part of a levy in specified circumstances;
(f) for a claim to be entertained only if it is made by a specified kind of claimant;
(g) for a claim to be entertained only if it falls within a specified kind of claim;
(h) as to the procedure to be followed in making a claim;
(i) for the making of interim payments before a claim is finally determined;
(j) limiting the amount payable on a claim to a specified maximum amount or a maximum amount calculated in a specified manner;
(k) for payment to be made, in specified circumstances, to a person other than the claimant.
(1A) Rules by virtue of subsection (1)(h) may, in particular, allow the scheme manager to treat persons who are or may be entitled to claim under the scheme as if they had done so.
(1B) A reference in any enactment or instrument to a claim or claimant under this Part includes a reference to a deemed claim or claimant in accordance with subsection (1A).
(1C) Rules by virtue of subsection (1)(j) may, in particular, allow, or be subject to rules which allow, the scheme manager to settle a class of claim by payment of sums fixed without reference to, or by modification of, the normal rules for calculation of maximum entitlement for individual claims.
(2) Different provision may be made with respect to different kinds of claim.
(3) The scheme may provide for the determination and regulation of matters relating to the scheme by the scheme manager.
(4) The scheme, or particular provisions of the scheme, may be made so as to apply only in relation to—
(a) activities carried on,
(b) claimants,
(c) matters arising, or
(d) events occurring,
in specified territories, areas or localities.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) The scheme may provide for the scheme manager to have power—
(a) in specified circumstances,
(b) but only if the scheme manager is satisfied that the claimant is entitled to receive a payment in respect of his claim—
(i) under a scheme which is comparable to the compensation scheme, or
(ii) as the result of a guarantee given by a government or other authority,
to make a full payment of compensation to the claimant and recover the whole or part of the amount of that payment from the other scheme or under that guarantee.