Compensation from third parties
- What happens if I have received compensation for my losses from a third party? Can I still claim compensation from FSCS?
1. What happens if I have received compensation for my losses from a third party? Can I still claim compensation from FSCS?
If at any time you receive money from anyone other than FSCS or KPMG relating to your WorldSpreads losses, you must immediately declare it to FSCS and KPMG.
The FSCS provides compensation for financial losses suffered only where they cannot be paid by anyone else. It is a requirement of your agreement with FSCS that you have not received compensation for your WorldSpreads losses from anyone else. Your agreement with FSCS transfers to them your legal right to claim against WorldSpreads and requires you to repay FSCS if you receive a recovery from anyone else.
This means that if you have already sold your right to claim against WorldSpreads to someone else (e.g. a fund company) before you signed the application to FSCS, you are not entitled to any FSCS payment. If you receive any payment from a third party after you receive FSCS compensation, you are legally obliged to inform FSCS and, if required to do so, to repay some or all of the compensation paid to you by FSCS.