1. An individual member who makes an application under the scheme, (an “applicant”) shall be entitled to compensation if the applicant makes an application which establishes to the Panel’s satisfaction that –
(a) an underwriting agent is liable to the applicant in respect of:
(i). loss suffered by the applicant as a result of any fraud, dishonesty or want of probity on the part of the underwriting agent or any director or employee thereof in connection with the business carried on by that underwriting agent; or
(ii). failure to account for or render to the applicant moneys or other property received by the underwriting agent in the course of such business; and
(b) the underwriting agent is unable or unlikely to be able fully to meet that liability.
2. In order to make an application for compensation under this scheme, the applicant must provide the Panel with a judgment which establishes to the Panel’s satisfaction the matters set out in [1.(a)(i) or (ii)] above unless in exceptional circumstances the Panel agrees in its discretion that it is appropriate for an application to be made without a judgment.
3. For the purposes of the scheme a failure by a trustee or trustees of a premiums trust fund appointed by an underwriting agent to account for or render to a member moneys or other property received by them which would give rise to a liability of the underwriting agent to the member shall be treated as a failure by that underwriting agent to account for or render to that member moneys or other property received by that underwriting agent.
Disqualification from eligibility
4. No member shall be entitled to compensation under the scheme to the extent that he has, in the opinion of the Panel, by his own negligent or wilful act or omission–
(a) caused or materially contributed to any loss suffered by any member (including himself); or
(b) caused or contributed to any breach of fiduciary duty owed by the underwriting agent to any member (including himself),
where that loss or breach of fiduciary duty is related to that member’s application for compensation under the scheme.
Guidance
5. The Council may from time to time make and publish guidance, which the Panel shall take into account in operating this scheme, as to:
(a) the nature of a judgment that may be treated as satisfying the Panel as to the matters set out in [1.(a)(i) or (ii)] above;
(b) the nature of exceptional circumstances that may cause the Panel to agree that it is appropriate for an application to be made without a judgment; and
(c) any other matters.