COMP 8.2 Rejection of application for compensation

If an application for compensation contains any material inaccuracy or omission, the FSCS may reject the application unless this is considered by the FSCS to be wholly unintentional.

The FSCS must reject an application for compensation if:

1. (1)

   the FSCS considers that a civil claim in respect of the liability would have been defeated by a defence of limitation at the earlier of:

   1. (a)

      the date on which the relevant person (or, where applicable, a successor) is determined to be in default; and

   2. (b)

      the date on which the claimant first indicates in writing that he may have a claim against the relevant person (or, where applicable, a successor);

   unless COMP 8.2.4 R or COMP 8.2.4A R applies; or

2. (2)

   the liability of the relevant person (or, where applicable, a successor) to the claimant has been extinguished by the operation of law, unless COMP 8.2.5 R applies.

For claims made in connection with protected investment business, protected home finance mediation, protected non-investment insurance distribution, protected debt management business or protected funeral plan business, the FSCS may disregard a defence of limitation where the FSCS considers that it would be reasonable to do so.

For a claim which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, the FSCS must disregard a defence of limitation which became available after the scheme was made or imposed.

For claims made in connection with protected investment business, protected non-investment insurance distribution, protected home finance mediation, protected debt management business or protected funeral plan business, if a relevant person (or, where applicable, a successor), incorporated as a company, has been dissolved with the result that its liability to the claimant has been extinguished by operation of law, the FSCS must treat the claim, for the purposes of paying compensation, as if the relevant person or a successor, as appropriate, had not been dissolved.

The FSCS may reject an application for compensation if:

1. (1)

   it relates to an event or transaction which has been reviewed under the provisions of a 'deemed scheme' as defined in the Financial Services and Markets Act 2000 (Transitional Provisions) (Reviews of Pensions Business) Order 2001 (SI 2001/2512); and

2. (2)

   as a result of the review in (1) no redress was payable, or redress was paid, in accordance with the regulatory standards for the review of such events or transactions, and the terms of any scheme order, applicable as at the date of the review.