Prudential Regulation Authority Rulebook

7.1

The directions in this Chapter are given under section 318 of FSMA (Exercise of powers through Council) for the purpose of achieving the objective specified, as required by section 318(2) of FSMA.

7.2

The directions given in this Chapter are given in relation to the exercise of the powers by the Society in respect of the Central Fund and are given with a view to achieving the objective of ensuring that the Society in making payments, or in providing any other financial assistance from the Central Fund, does so on a basis which does not take into account the amounts of compensation which policyholders may receive under the provisions of the compensation scheme in respect of protected claims against members.

7.3

The Society must, in the exercise of its powers to make payments from the Central Fund or to provide other forms of financial assistance from the Central Fund, ensure that in calculating and determining the amount of any such payment or the amount of any other financial assistance, it does not take into account the amounts of compensation which policyholders may receive under the provisions of the compensation scheme in respect of protected claims against members.