This statement of policy is aimed at the Financial Services Compensation Scheme (FSCS) in respect of its role as scheme manager of the Dormant Account Scheme (DAS) but may also be of interest to firms and depositors.
The Prudential Regulation Authority (PRA) is required, under section 213 of the Financial Services and Markets Act (FSMA), to make rules establishing a scheme for compensating persons in cases where a dormant account fund operator is unable, or likely to be unable, to satisfy a repayment claim against it. These rules are set out in the Dormant Account Scheme Part of the PRA Rulebook, and apply to the FSCS and firms that are DAS members.
The purpose of this statement is to set out the PRA’s expectations of the FSCS with regards to:
(a) the duties of the FSCS;
(b) the FSCS’s role in assessing and paying compensation in respect of dormant accounts; and
(c) the FSCS’s role in the funding of the DAS.
By providing further information to the FSCS with regard to its duties and role in paying and funding compensation of the DAS, this statement of policy aims to ensure an effective DAS. This statement of policy is intended to be read together with the rules specific to dormant accounts as set out in the Dormant Accounts Scheme Part of the PRA Rulebook, which applies to the FSCS, dormant account fund operators and firms that are DAS members. The funding section is also intended to be read with the Management Expenses Levy Limit and Base Costs Part and the Management Expenses in respect of Relevant Schemes Part of the PRA Rulebook.