25Compensation rules: general
(1)For the purposes of this Part, the compensation rules are rules in pursuance of (as the case may be)—
(a)option A in section 24, or
(b)option B in that section.
(2)In pursuance of option A, the rules must—
(a)state—
(i)the purpose of the approved regulator’s compensation fund,
(ii)as a minimum, the monetary amount to be contained in that fund,
(b)describe the way in which that fund is to be administered by the approved regulator,
(c)specify the criteria for qualifying for payment out of that fund,
(d)provide for the procedure for—
(i)making claims for such payment,
(ii)determining such claims,
(e)require the making of contributions to that fund by a licensed provider in accordance with the relevant scale of annual contributions fixed by virtue of section 24(3)(b),
(f)make provision for the destination (or distribution) of that fund in the event that the approved regulator ceases to operate.
(3)In pursuance of option B, the rules must require the making of contributions to the Guarantee Fund by a licensed provider in accordance with the relevant scale of annual contributions fixed under paragraph 1(3) of Schedule 3 to the 1980 Act.