This statement of policy is addressed to the Financial Services Compensation Scheme (FSCS) in respect of its role as scheme manager of the policyholder protection scheme. This statement may also be of interest to insurance firms, successors (where relevant), the Society of Lloyd’s and policyholders.
The purpose of this statement is to set out the expectations of the Prudential Regulation Authority (PRA) with regard to the FSCS’s general duties. By clarifying the PRA’s expectations in respect of the administration of the scheme, this statement of policy should help to ensure an effective policyholder protection scheme that advances the safety and soundness of firms, and contributes to securing an appropriate degree of protection for those who are, or may become, policyholders.
This statement of policy is intended to be read together with the insurance specific rules set out in the Policyholder Protection Part and the Lloyd’s Part, which are applicable (at parts) to the FSCS, insurers, successors (where applicable) and the Society. The funding section of the Policyholder Protection Part is intended to be read together with the FSCS Management Expenses Levy Limit and Base Costs Part and the Management Expenses in respect of Relevant Schemes Part, which is applicable to the FSCS, insurers and the Society.