(1)The compensation scheme may, in particular, make provision—
(a)as to the circumstances in which a relevant person[F1640 or relevant exchangeF1640] is to be taken (for the purposes of the scheme) to be unable, or likely to be unable, to satisfy claims made against him [F1641or itF1641] ;
[F1642 (aa)as to the circumstances in which a successor falling within section 213(1)(b) is to be taken (for the purposes of the scheme) to be unable, or likely to be unable, to satisfy claims against the successor that are based on the acts or omissions of a relevant person [F1643 or relevant exchangeF1643] ;F1642]
(b)for the establishment of different funds for meeting different kinds of claim;
(c)for the imposition of different levies in different cases;
(d)limiting the levy payable by a person in respect of a specified period;
(e)for repayment of the whole or part of a levy in specified circumstances;
(f)for a claim to be entertained only if it is made by a specified kind of claimant;
(g)for a claim to be entertained only if it falls within a specified kind of claim;
(h)as to the procedure to be followed in making a claim;
(i)for the making of interim payments before a claim is finally determined;
(j)limiting the amount payable on a claim to a specified maximum amount or a maximum amount calculated in a specified manner;
(k)for payment to be made, in specified circumstances, to a person other than the claimant.
[F1644 (1A)Rules by virtue of subsection (1)(h) may, in particular, allow the scheme manager to treat persons who are or may be entitled to claim under the scheme as if they had done so.
(1B)A reference in any enactment or instrument to a claim or claimant under this Part includes a reference to a deemed claim or claimant in accordance with subsection (1A).
(1C)Rules by virtue of subsection (1)(j) may, in particular, allow, or be subject to rules which allow, the scheme manager to settle a class of claim by payment of sums fixed without reference to, or by modification of, the normal rules for calculation of maximum entitlement for individual claims.F1644]
(2)Different provision may be made with respect to different kinds of claim.
(3)The scheme may provide for the determination and regulation of matters relating to the scheme by the scheme manager.
(4)The scheme, or particular provisions of the scheme, may be made so as to apply only in relation to—
(a)activities carried on,
(b)claimants,
(c)matters arising, or
(d)events occurring,
in specified territories, areas or localities.
F1645 (5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)The scheme may provide for the scheme manager to have power—
(a)in specified circumstances,
(b)but only if the scheme manager is satisfied that the claimant is entitled to receive a payment in respect of his claim—
(i)under a scheme which is comparable to the compensation scheme, or
(ii)as the result of a guarantee given by a government or other authority,
to make a full payment of compensation to the claimant and recover the whole or part of the amount of that payment from the other scheme or under that guarantee.
427.This section clarifies the scope of the Authority’s power to make scheme rules.
428.Subsection (1) provides, in particular, that the scheme may consist of a number of different compensation funds, for which levies can be raised from different sectors of the industry and different rules may be made as to the level of and eligibility for compensation.
429.Subsections (2) to (4) enable the scheme to limit the eligibility of claimants according to a number of different factors, including where the event took place or where the claimant resides.
430.Subsection (6) confers on the scheme manager a power to enter into arrangements with schemes established in other countries outside the EEA. Where, for example, a US firm does business in the United Kingdom and the level of compensation under the US scheme is lower than in the United Kingdom, the firm would be able to become a member of the UK scheme for the purposes of topping-up its cover. If the firm was unable to meet its liabilities, claimants might have a claim against both the US and the UK schemes. This power would in turn enable the UK scheme to enter into an arrangement with the US scheme to avoid the need for the claimant to submit a claim to both schemes. It is possible to make reciprocal arrangements under the power in subsection (1)(k).