Financial Services and Markets Act 2000, section 212

The scheme manager

Part XV The Financial Services Compensation Scheme

[F1612 (1)The scheme manager” means the body corporate established by the Financial Services Authority under this section as originally enacted.

(2)The regulators must take such steps as are necessary to ensure that the scheme manager is, at all times, capable of exercising the functions conferred on it by or under this Part or Part 15A.F1612]

(3)The constitution of the scheme manager must provide for it to have—

(a)F1613a chairman; ...

[F1614 (aa)a chief executive F1615...; andF1614]

(b)a board (which must include the chairman [F1616and chief executiveF1616] ) whose members are the scheme manager’s directors.

(4)The chairman [F1617, chief executiveF1617] and other members of the board must be persons appointed, and liable to removal from office, by the [F1618regulatorsF1618] (acting, in the case of the chairman [F1619and the chief executiveF1619] , with the approval of the Treasury).

(5)But the terms of their appointment (and in particular those governing removal from office) must be such as to secure their independence from the [F1620regulatorsF1620] in the operation of the compensation scheme.

(6)The scheme manager is not to be regarded as exercising functions on behalf of the Crown.

(7)F1621The scheme manager’s ... officers and staff are not to be regarded as Crown servants.

Read section 212 in the full Act → Definitions (6) Cases (6)

Definitions used in section 212

body corporate

“body corporate” includes a body corporate constituted under the law of a country or territory outside the United Kingdom;

Defined in s.417(1) · see it in the full Act
regulator

“regulator” has the meaning given in section 3A(2);

Defined in s.417(1) · see it in the full Act
functions

(4) Neither section 2AB(3)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZB para.31(4) · see it in the full Act

(2A) The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act ; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.

Defined in Sch.1ZA para.23(2A) · see it in the full Act

(4) Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZA para.23(4) · see it in the full Act
chief executive

“chief executive”—

(a)

in relation to a body corporate whose principal place of business is within the United Kingdom, means an employee of that body who, alone or jointly with one or more others, is responsible under the immediate authority of the directors, for the conduct of the whole of the business of that body; and

(b)

in relation to a body corporate whose principal place of business is outside the United Kingdom, means the person who, alone or jointly with one or more others, is responsible for the conduct of its business within the United Kingdom;

Defined in s.417(1) · see it in the full Act
director

“director”, in relation to a body corporate, includes—

(a)

a person occupying in relation to it the position of a director (by whatever name called); and

(b)

a person in accordance with whose directions or instructions (not being advice given in a professional capacity) the directors of that body are accustomed to act;

Defined in s.417(1) · see it in the full Act
the compensation scheme

(2) The rules (taken together) are to be known as the Financial Services Compensation Scheme (but are referred to in this Act as “the compensation scheme”).

Defined in s.213(2) · see it in the full Act

“the compensation scheme” has the meaning given in section 213(2);

Defined in s.417(1) · see it in the full Act

Cases considering section 212 (6)

Manchikalapati & Ors, R (on the application of) v The Financial Services Compensation Scheme

[2023] EWCA Civ 1006 · 5 September 2023

Section 212 provides for the establishment of the FSCS as scheme manager. It framed the statutory context but was not otherwise material to the construction issue. (see para [10])

Ian Golding & Ors, R (on the application of) v Financial Services Compensation Scheme Limited

[2026] EWHC 2337 (Admin) · 11 September 2026Defines

The court used section 212(1) to identify the defendant as scheme manager. (see para [12])

Margaret Chong & Ors, R (on the application of) v Financial Services Compensation Scheme Ltd

[2024] EWHC 3374 (Admin) · 31 December 2024Defines

Identifies the FSCS as the scheme manager under the statutory compensation scheme. (see para [10])

What each judgment says about section 212 is in the case-law panel in the full Act.

Explanatory note

422.This section requires the Authority to establish a company to manage the scheme and sets requirements as to the company’s constitution, including that the chairman should be appointed by the Authority with the approval of the Treasury and that board members should act independently of the Authority.

All the explanatory notes for the Act

Amendments and notes

10 notes from legislation.gov.uk

Amendments

  1. F1612S. 212(1)(2) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 10 para. 2(2) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
  2. F1613Word in s. 212(3) omitted (1.4.2014) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), ss. 16(2)(a), 148(5); S.I. 2014/377, art. 2(2)(a)
  3. F1614S. 212(3)(aa) inserted (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 16(2)(b), 148(5); S.I. 2014/377, art. 2(2)(a)
  4. F1615Words in s. 212(3)(aa) omitted (29.8.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), ss. 62(2), 86(2)(h)
  5. F1616Words in s. 212(3)(b) inserted (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 16(2)(c), 148(5); S.I. 2014/377, art. 2(2)(a)
  6. F1617Words in s. 212(4) inserted (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 16(3)(a), 148(5); S.I. 2014/377, art. 2(2)(a)
  7. F1618Word in s. 212(4) substituted (24.1.2013 for specified purposes) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 10 para. 2(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3 text substituted for certain specified purposes only, see the commentary. Note: in some cases two versions of the measure may be present: the original version and substituted version.
  8. F1619Words in s. 212(4) inserted (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 16(3)(b), 148(5); S.I. 2014/377, art. 2(2)(a)
  9. F1620Word in s. 212(5) substituted (24.1.2013 for specified purposes) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 10 para. 2(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3 text substituted for certain specified purposes only, see the commentary. Note: in some cases two versions of the measure may be present: the original version and substituted version.
  10. F1621Words in s. 212(7) omitted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 10 para. 2(4) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.