In this Consultation Paper (CP) we propose that all unincorporated associations and certain large partnerships will become eligible to claim on the Financial Services Compensation Scheme (FSCS) if an investment firm fails.
We are consulting on these changes to ensure our rules properly implement the Investor Compensation Schemes Directive (ICSD). The Prudential Regulation Authority (PRA) is consulting on a similar change for unincorporated associations to ensure its rules clearly implement the Deposit Guarantee Schemes Directive (DGSD).
This consultation affects firms authorised by the FCA and in particular firms authorised to carry on investment business that contribute to FSCS levies if an investment firm is unable, or likely to be unable, to meet claims against it.
Our proposals concern the changes needed to ensure our rules properly implement the eligibility requirements in the ICSD. We have included some questions about this in Chapter 2. We would welcome your comments on the proposals.
We are consulting for four weeks because we want to make the changes as soon as possible. Please send us your comments by 30 October 2013 using the online response form. We will review all the responses we get by then and intend to publish feedback – including the final text of the rules on which we are now consulting in a Policy Statement – at the end of this year or early 2014.
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