Assignment of right to claim compensation
- The FSCS Application form refers to an assignment of my rights. What is meant by this?
- If I receive compensation from the administrator (KPMG) can I still pursue a claim with the FSCS?
1. The FSCS Application form refers to an assignment of my rights. What is meant by this?
If the FSCS pays a claim for compensation, under the terms of its offer of payment, a claimant will be required to assign (make a legal transfer) to the FSCS all their legal rights in relation to their claim. This enables the FSCS to 'stand in the shoes' of investors in respect of their claim in the administration. Relying on these rights, the FSCS will seek to recover the compensation it has paid out.
If you have received an FSCS payment you will have assigned your rights to us. This means that any dividend you would have received from KPMG will now be paid to us. Please see question 12 for further information.
The compensation payment is in full and final settlement of your claim for compensation from FSCS, and in discharge of FSCS’s obligations to you. Your rights against the firm and any relevant third parties are also transferred to FSCS.
2. If I receive compensation from the administrator (KPMG) can I still pursue a claim with the FSCS?
Yes you can. However, when calculating your compensation the FSCS will deduct any payments you have received from the administrator from your final compensation loss calculation.