http://www.legislation.gov.uk/ukpga/2000/8/section/404/2002-08-21Financial Services and Markets Act 2000An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.2000-06-15texttext/xmlenStatute Law Database2026-04-072002-07-18 Part XXVIII Miscellaneous Schemes for reviewing past business Schemes for reviewing past business.4041Subsection (2) applies if the Treasury are satisfied that there is evidence suggesting—athat there has been a widespread or regular failure on the part of authorised persons to comply with rules relating to a particular kind of activity; andbthat, as a result, private persons have suffered (or will suffer) loss in respect of which authorised persons are (or will be) liable to make payments (“compensation payments”).2The Treasury may by order (“a scheme order”) authorise the Authority to establish and operate a scheme for—adetermining the nature and extent of the failure;bestablishing the liability of authorised persons to make compensation payments; andcdetermining the amounts payable by way of compensation payments.3An authorised scheme must be made so as to comply with specified requirements.4A scheme order may be made only if—athe Authority has given the Treasury a report about the alleged failure and asked them to make a scheme order;bthe report contains details of the scheme which the Authority propose to make; andcthe Treasury are satisfied that the proposed scheme is an appropriate way of dealing with the failure.5A scheme order may provide for specified provisions of or made under this Act to apply in relation to any provision of, or determination made under, the resulting authorised scheme subject to such modifications (if any) as may be specified.6For the purposes of this Act, failure on the part of an authorised person to comply with any provision of an authorised scheme is to be treated (subject to any provision made by the scheme order concerned) as a failure on his part to comply with rules.7The Treasury may prescribe circumstances in which loss suffered by a person (“A”) acting in a fiduciary or other prescribed capacity is to be treated, for the purposes of an authorised scheme, as suffered by a private person in relation to whom A was acting in that capacity.8This section applies whenever the failure in question occurred.9“Authorised scheme” means a scheme authorised by a scheme order.10“Private person” has such meaning as may be prescribed.11“Specified” means specified in a scheme order.S. 404 modified (6.8.2001) by S.I. 2001/2512, arts. 1(1), 6(1)