53.This section sets out the rules that approved regulators must have about the compensation option chosen under section 24. If an approved regulator chooses to set up its own fund, the compensation rules must set out:
the purpose of the fund;
the minimum amount to be contained within it;
the way in which the fund will be administered;
the criteria for making payments;
the procedure for making a claim, and for determining whether a claim is to be granted;
a requirement for licensed providers to contribute to the fund; and
the destination of the fund should the approved regulator cease to regulate.
54.If the Guarantee Fund is to be used by an approved regulator, the compensation rules must require licensed providers to contribute to it.