Part XV The Financial Services Compensation Scheme

Information and documents

F1218AF2Regulators' power to require information

F3(1)

Each regulator may make rules enabling that regulator to require authorised persons F4or recognised investment exchanges carrying on a regulated activity relating to a trading facility to—

(a)

provide information to the scheme manager on the request of that regulator or the scheme manager; or

(b)

provide information to that regulator, which may then be made available to the scheme manager by that regulator.

(2)

A requirement may be imposed only if the F5regulator thinks the information is of a kind that may be of use to the scheme manager in connection with functions in respect of the scheme.

(3)

A requirement under this section may apply—

(a)

to authorised persons generally or only to specified persons or classes of person;

F6(aa)

to recognised investment exchanges mentioned in subsection (1) generally or only to specified exchanges or classes of exchange;

(b)

to the provision of information at specified periods, in connection with specified events or in other ways.

(4)

In addition to requirements under this section, a notice under section 165 may relate to information or documents which the F7regulator thinks are reasonably required by the scheme manager in connection with the performance of functions in respect of the scheme; and section 165(4) is subject to this subsection.

(5)

Rules under subsection (1) shall be prepared, made and treated in the same way as (and may be combined with) the F8regulator's general rules.

F9218BTreasury's power to require information from scheme manager

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219 Scheme manager’s power to require information.

(1)

The scheme manager may, by notice in writing F10require a person—

(a)

to provide specified information or information of a specified description; or

(b)

to produce specified documents or documents of a specified description.

F11(1A)

A requirement may be imposed only—

(a)

on a person (P) against whom a claim has been made under the scheme,

(b)

on a person (P) who is unable or likely to be unable to satisfy claims under the scheme against P,

F12(ba)

on a person (P) who is an insurer who has been given financial assistance under section 217ZA,

(c)

on a person (“the Third Party”) whom the scheme manager thinks was knowingly involved in matters giving rise to a claim against another person (P) under the scheme, F13...

(d)

on a person (“the Third Party”) whom the scheme manager thinks was knowingly involved in matters giving rise to the actual or likely inability of another person (P) to satisfy claims under the scheme F14, or

(e)

on a person (“the Third Party”) whom the scheme manager thinks is or was at any relevant time involved in any contract of insurance or in the administration of any trust arrangement relating to a funeral plan contract entered into or carried out by a person (P)—

(i)

against whom a claim has been made under the scheme, or

(ii)

who is unable or likely to be unable to satisfy claims under the scheme against P.

(1B)

For the purposes of subsection (1A)(b) F15, (d) and (e)(ii) whether P is unable or likely to be unable to satisfy claims shall be determined in accordance with provision to be made by the scheme (which may, in particular—

(a)

apply or replicate, with or without modifications, a provision of an enactment;

(b)

confer discretion on a specified person).

(2)

The information or documents must be provided or produced—

(a)

before the end of such reasonable period as may be specified; and

(b)

in the case of information, in such manner or form as may be specified.

(3)

This section applies only to information and documents the provision or production of which the scheme manager considersF16 to be necessary (or likely to be necessary) for the fair determination of claims which have been or may be made against P.

F17(3A)

Where a stabilisation power under Part 1 of the Banking Act 2009 has been exercised in respect of a bank, F18building society or credit union, the scheme manager may by notice in writing require F19the bank, building society or credit union, or the Bank of England, to provide information that the scheme manager requires for the purpose of F20determining the matters mentioned in section 214D(2)(a) and (b) above.

(4)

If a document is produced in response to a requirement imposed under this section, the scheme manager may—

(a)

take copies or extracts from the document; or

(b)

require the person producing the document to provide an explanation of the document.

(5)

If a person who is required under this section to produce a document fails to do so, the scheme manager may require the person to state, to the best of his knowledge and belief, where the document is.

(6)

If F21P is insolvent, no requirement may be imposed under this section on a person to whom section 220 or 224 applies.

(7)

If a person claims a lien on a document, its production under this Part does not affect the lien.

(8)

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)

“Specified” means specified in the notice given under subsection (1).

(10)

F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

220 Scheme manager’s power to inspect information held by liquidator etc.

(1)

For the purpose of assisting the scheme manager to discharge its functions in relation to a claim made in respect of an insolvent relevant person F24or insolvent relevant exchange, a person to whom this section applies must permit a person authorised by the scheme manager to inspect relevant documents.

(2)

A person inspecting a document under this section may take copies of, or extracts from, the document.

(3)

This section applies to—

(a)

the administrative receiver, administrator, liquidator F25, bank liquidatorF26, building society liquidator or trustee in bankruptcy of an insolvent relevant person F27or insolvent relevant exchange;

(b)

the F28trustee in the sequestration, under the Bankruptcy (Scotland) Act 2016, of the estate of an insolvent relevant person F29or insolvent relevant exchange.

(4)

This section does not apply to a liquidator, administrator or trustee in bankruptcy who is—

(a)

the Official Receiver;

(b)

the Official Receiver for Northern Ireland; or

(c)

the Accountant in Bankruptcy.

(5)

“Relevant person” F30and “relevant exchange” F31have the same meaning as in section 224.

F32220APower to inspect information held by write-down manager

(1)

For the purpose of assisting the scheme manager to discharge its functions under section 217ZA or 217ZB in relation to an insurer, a person to whom this section applies must permit a person authorised by the scheme manager to inspect relevant documents.

(2)

This section applies to a person appointed under section 377G to act as the manager of a write-down order which has effect in relation to the insurer.

(3)

A person inspecting a document under this section may take copies of, or extracts from, the document.

221 Powers of court where information required.

(1)

If a person (“the defaulter”)—

(a)

fails to comply with a requirement imposed under section 219, or

(b)

fails to permit documents to be inspected under section 220,

the scheme manager may certify that fact in writing to the court and the court may enquire into the case.

(2)

If the court is satisfied that the defaulter failed without reasonable excuse to comply with the requirement (or to permit the documents to be inspected), it may deal with the defaulter (and, in the case of a body corporate, any director or F33other officer) as if he were in contempt F34; and “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership..

(3)

“Court” means—

(a)

the High Court;

(b)

in Scotland, the Court of Session.