2.—(1) This regulation applies to compensation paid to a person (“the claimant”) by the operator of a relevant scheme set up pursuant to the conditions and arrangements mentioned in section 43(2) of the Financial Services Act 1986(1) in respect of any liability of an investment firm which is or was a participant in the scheme.
(2) Where the operator of a relevant scheme pays compensation to which this regulation applies, the payment of compensation extinguishes the liability of that firm to the claimant to the extent of the compensation paid and confers on the operator a right of recovery against the firm which is otherwise identical to the claimant’s former rights in the claim or part thereof.