(This note is not part of the Order)

The Financial Conduct Authority (the FCA) and the Prudential Regulation Authority (the PRA) are both responsible for making rules for the Financial Services Compensation Scheme to enable it to compensate persons in circumstances where relevant persons (as defined in s. 213(9) of the Financial Services and Markets Act 2000 (the Act)) are unable, or likely to be unable, to satisfy claims against them; or, in cases where persons (successors, as defined in section 213(1)(b) of the Act) have assumed responsibility for acts or omissions of relevant persons, those successors are unable, or likely to be unable, to satisfy claims based on those acts or omissions (s. 213(1) of the Act).

This Order specifies what the PRA may make rules for, and what the FCA may make rules for.

Article 2 enables the PRA to make rules to compensate persons in cases where relevant persons or successors are unable, or likely to be unable, to satisfy claims against them:

(a) for a deposit within the meaning of article 5 of the Regulated Activities Order including:

(i) a deposit that would otherwise be excluded by article 6 of that Order; and

(ii) a repayment claim as defined in section 5 of the Dormant Bank and Building Society Accounts Act 2008;

(b) under a contract of insurance;