Insolvency of insurers

Obligations of the Financial Services Compensation Scheme

The short but important point which arose before Davis J in R (on the application of Geologists Ltd) v Financial Services Compensation Scheme [2003] EWHC 629 (Admin) was whether the FSCS is required under the terms of the Policyholders Protection Act 1975 to pay the legal costs of the holder of a liability policy. The case was decided before the implementation of the compensation scheme introduced by the Financial Services and Markets Act 2000.