The Financial Services Compensation Scheme (FSCS) will accept claims against unauthorised firms that have failed if they relate to liabilities passed on from a regulated business, the regulator has said.
In a paper out on 29 April, which set out to clarify the regulator's position on successor firm liabilities, it said the FSCS will accept claims against successor firms in respect of liabilities passed on by a previous firm, should the successor firm be unable to meet them. The regulator clarified this rule, coming into effect immediately, would apply to both regulated and unregulated successor firms but only in respect of liabilities from regulated business. The rule only applies to successor firms that have agreed to take on the liabilities of the firm they took over and only to bus...
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