Prudential Regulation Authority Rulebook

12.1

This Chapter applies only to the FSCS.

12.2

The FSCS’s powers in this Chapter may be used:

1. (1) separately or in any combination as an alternative and in substitution for the powers and processes elsewhere in this Part;
2. (2) in relation to all or any part of a claim in respect of a protected dormant account or class of claims in respect of protected dormant accounts.

12.3

The FSCS may determine that the payment of compensation by the FSCS in respect of protected dormant accounts shall have all or any of the following effects:

1. (1) the FSCS shall immediately and automatically be subrogated, subject to such conditions as the FSCS determines are appropriate, to all or any part (as determined by the FSCS) of the rights and claims in the United Kingdom and elsewhere of the claimant against the dormant account fund operator and/or any third party (whether such rights are legal, equitable or of any other nature whatsoever and in whatever capacity the dormant account fund operator or third party is acting) in respect of or arising out of the claim in respect of which the payment of or on account of compensation was made;
2. (2) the FSCS may claim and take legal or any other proceedings or steps in the United Kingdom or elsewhere to enforce such rights in its own name or in the name of, and on behalf of, the claimant or in both names against the dormant account fund operator and/or any third party;
3. (3) the subrogated rights and claims conferred on the FSCS shall be rights of recovery and claims against the dormant account fund operator and/or any third party which are equivalent (including as to amount and priority and whether or not the relevant dormant account fund operator is insolvent) to the payment of compensation made by the FSCS and do not exceed the rights and claims that the claimant would have had; and/or
4. (4) such rights or obligations (as determined by the FSCS) as between the dormant account fund operator and the claimant arising out of the protected dormant account claim in respect of which the payment was made shall be transferred to, and subsist between, another dormant account fund operator with an appropriate permission and the claimant provided that the other dormant account fund operator has consented (but the transferred rights and/or obligations shall be treated as existing between the dormant account fund operator and the FSCS to the extent of any subrogation, transfer or assignment for the purposes of (1) to (3) and 12.4.

12.4

The changes to this rule are effective from 23:00 on 31/12/2020.

1. (1) The FSCS may determine that, if it is necessary or desirable in conjunction with the exercise of the FSCS's powers under 12.3, that the claimant shall be treated as having irrevocably and unconditionally appointed the chairman of the FSCS for the time being to be their attorney and agent and on their behalf and in their name or otherwise to do such things and execute such deeds and documents as may be required under such laws of the UK, Gibraltar or any other state or law-country to create or give effect to such assignment or transfer or otherwise give full effect to those powers.
2. (2) The execution of any deed or document under (1) shall be as effective as if made in writing by the compensation recipient or by his agent lawfully authorised in writing or by will.

12.5

1. (1) The powers conferred on the FSCS in 12.3 and 12.4 to make a determination must be exercised in writing.
2. (2) An instrument by which the FSCS makes the determination must specify the provision under which it is made, the date and time from which it takes effect and the dormant account fund operator and protected dormant account claims, parts of protected dormant account claims and/or classes of protected dormant account claims in respect of which it applies.
3. (3) The FSCS must take appropriate steps to publish the determination as soon as possible after it is made. Such publication must be accompanied by a statement explaining the effect of 12.3 and the FSCS’s determination.
4. (4) Failure to comply with any requirement in this rule does not affect the validity of the determination.
5. (5) A determination by the FSCS under 12.3 may be amended, remade or revoked at any time and subject to the same conditions.

12.6

1. (1) The production of a copy of a determination purporting to be made by the FSCS under this Chapter:
1. (a) on which is endorsed a certificate, signed by a member of the FSCS's staff authorised by it for that purpose; and
2. (b) which contains the required statements; is evidence (or in Scotland sufficient evidence) of the facts stated in the certificate.
2. (2) The required statements are:
1. (a) that the determination was made by the FSCS; and
2. (b) that the copy is a true copy of the determination.
3. (3) A certificate purporting to be signed as mentioned in (1) is to be taken to have been properly signed unless the contrary is shown.
4. (4) A person who wishes in any legal proceedings to rely on a determination may require the FSCS to endorse a copy of the determination with a certificate of the kind mentioned in (1).