The Dunfermline Building Society Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009

Valuation principles

9.  In making the assessment of the insolvency treatment as required under paragraph 6(1), the independent valuer must determine the amount of compensation payable in accordance with the following valuation principles (in addition to the principle which applies by virtue of section 57(3) of the Act)—

(a) that Dunfermline was failing, or was likely to fail, to satisfy its threshold conditions (within the meaning of section 41(1) of the Financial Services and Markets Act 2000(1) (permission to carry on regulated activities));

(b) that Dunfermline would have entered insolvency immediately before the relevant time;

(c) the Transfer Instrument has not been made and that no other order or instrument under Part 1 of the Act would have been made in relation to or in connection with Dunfermline; and

(d) that no financial assistance(2) would have, after the relevant time, been provided to Dunfermline by the Bank of England or the Treasury.

(1)

2000 c.8.

(2)

“Financial assistance” is defined in section 257 of the Act.