431.Subsection (1) enables the Authority to make provision about the effect of a payment of compensation under the scheme on the rights and obligations arising out of the claim against a relevant person in respect of which the payment was made.  This allows the Authority to make provision for the rights of the claimant to be transferred to the scheme manager, which would enable the scheme manager to seek to recoup the costs of paying compensation from the firm in question without increasing the firm’s liabilities.  Subsection (2) provides that any right of recovery conferred on the scheme manager under subsection (1) cannot exceed the claimant’s original rights.
Commentary on Sections Part Xv: the Financial Services Compensation Scheme Section 215: Rights of the scheme in relevant person’s insolvency