Terms of payment
Please note that under this agreement you agree to assign certain of your rights to FSCS. In the event FSCS decides not to pursue recoveries using those rights, then it will, if you request so in writing, reassign those rights back to you.
By accepting payment of the compensation offered by FSCS in respect of a firm (“the Firm”) in FSCS “default” as set out in the letter which you have received from FSCS in relation to that Firm, you agree and acknowledge as follows:
1. You are claiming compensation for losses arising as a result of FSCS-protected business with the Firm (“the Claim”).
2. You accept the offer of compensation in full and final discharge and settlement of the obligations of FSCS, under the relevant rules and laws1 . You understand that any payment of compensation is payable by FSCS to fulfil your entitlement to compensation from FSCS in respect of the Claim.
3. All your rights against the Firm (or any third party involved in or connected to the Claim) will pass to and be assigned to FSCS absolutely on payment of compensation (or any part of it).
4. All your rights against any other person (which constitute a “Third Party Claim” as defined in paragraph 13 below) will pass to and be assigned to FSCS absolutely on payment of compensation (or any part of it).
5. On payment of compensation (or any part of it) you will no longer have the right to make any claim against the Firm or any other person in respect of the Claim or a Third Party Claim, and the right to make any such claims will be vested in FSCS. Any sums that would otherwise be payable to you in respect of the Claim (including any dividend or other payment in a liquidation or compromise with creditors or scheme of arrangement) or a Third Party Claim will be paid instead to FSCS.
6. You will not exercise any right or remedy that you may have or retain against the Firm or any other person arising out of, or in connection with, the Claim or any Third Party Claim, namely:
a. to rescind, set aside, avoid or otherwise alter any contract or obligation;
b. to set off, or reduce liability in respect of such a contract or obligation; or
c. any other right or remedy that is either personal to you or cannot be assigned or both.
7. If you recover any money or assets in respect of the Claim or in respect of a Third Party Claim, you will immediately pay or transfer it to FSCS.
8. If the payment of some or all of the compensation should not have been made for any reason, you will immediately and fully repay to FSCS any such compensation, without any deduction or set-off, plus interest.
9. You will give all reasonable co-operation and assistance that FSCS asks you to give in connection with any investigation or pursuit by FSCS of claims corresponding to the Claim and/or of any Third Party Claim, including providing documents, providing statements, swearing statements of truth and attending court to give oral evidence. If you make or give (or have made or given) any false or misleading statement, affirmation, or other evidence, you agree to indemnify and protect FSCS against any loss, liability, expense or cost that it may incur directly or indirectly as a result. You also agree, if asked by FSCS, to become a party to any proceedings brought by FSCS in respect of claims corresponding to the Claim and/or of any Third Party Claim.
10. You will give such further help or authority that FSCS from time to time may require to give full effect to the transfer of your rights and/or claims to FSCS under and for the purpose of this agreement. If any assignment in this document is ineffective in transferring any such rights and/or claims to FSCS, then FSCS will still be entitled to benefit from those rights and/or claims and will be entitled to any proceeds of them. All such proceeds will be paid to FSCS. To the extent that any assignment in this document is ineffective in law to pass any rights, claims or causes of action to FSCS, you irrevocably and unconditionally appoint FSCS as your agent in respect of such rights, claims or causes of action and agree that FSCS may pursue or enforce them on your behalf in whatever manner it considered appropriate.
11. FSCS may give a valid receipt to any person in respect of the Claim and/or any Third Party Claim.
12. FSCS will conduct all proceedings and settlement negotiations regarding claims assigned by you reasonably and with due regard to your interests as well as its own.
13. In this document, “Third Party Claim” means any right, claim or cause of action that you have or may have against any person other than the Firm or against any fund or property in the hands of any person other than the Firm in connection with or arising out of the circumstances giving rise to the Claim or otherwise relating to the Claim, whatever the nature of such claims.
14. This agreement and assignment is without prejudice to any rights which FSCS may have or acquire against the Firm and/or any third party and to the extent that such rights conflict with the terms of this agreement and assignment, FSCS may elect, to which election you consent, which rights and claims it shall pursue.
15. To the extent necessary to give effect to any right, claim or cause of action by FSCS, this agreement and assignment shall be severable in its terms.
16. This agreement and assignment shall be governed by and understood in accordance with English law and you irrevocably accept the exclusive jurisdiction of the English courts in respect of all matters arising out of or in connection with it.
Consent to FSCS use of your personal data - Data Protection
By accepting payment of the compensation offered by FSCS in respect of the Firm:
- the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) and any successors to them and third parties acting on their behalf to assist them in carrying out their statutory functions or otherwise to comply with legal or regulatory requirements; and/or
- the FOS where FSCS considers it would assist the FOS in carrying out their functions in helping to resolve complaints and/or the FSCS in resolving claims for compensation swiftly or pursuing recovery proceedings, for example ensuring there is no double payment or otherwise to comply with legal or regulatory requirements.
Explanations applying to the Consent: FSCS means the Financial Services Compensation Scheme Limited and includes its officers, employees, servants and agents. The FCA and/or PRA may act as agent of FSCS or on its own behalf. Personal data has the meaning set out in section 1(1) of the Data Protection Act 1998.
By accepting payment of compensation offered by FSCS in respect of the Firm you make the following declarations:
1 The rules of the Financial Services Compensation Scheme made by the FSA or its successor(s) and/or the provisions of the Financial Services and Markets Act 2000, the Banking Act 2009 and the Financial Services Act 2010, the Financial Services Act 2012 and all subordinated legislation made under any of these statutes (in all cases, as amended).