Prudential Regulation Authority Rulebook

14.1

This Chapter applies only to the FSCS.

14.2

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 unintentional.

14.3

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 dormant account fund operator 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 dormant account fund operator;
2. unless 14.4 applies.

14.4

The FSCS may withdraw any offer of compensation made to a claimant if the offer is not accepted or if it is not disputed within 90 days of the date on which the offer is made.

14.5

Where the amount of compensation offered is disputed, the FSCS may withdraw the offer but must consider exercising its powers to make a reduced or interim payment under 7.3 or 7.4 before doing so.

14.6

The FSCS may repeat any offer withdrawn under 14.4 or 14.5.

14.7

The FSCS must withdraw any offer of compensation if it appears to the FSCS that no such offer should have been made.

14.8

The FSCS must seek to recover any compensation paid to a claimant if it appears to the FSCS that no such payment should have been made, unless the FSCS believes on reasonable grounds that it would be unreasonable to do so, or that the costs of doing so would exceed any amount that could be recovered.