246Subrogation

246 Subrogation

246 Subrogation

(1) On payment of a claim from the fidelity fund, the fidelity authority is subrogated to the rights and remedies of the claimant against any person in relation to the default to which the claim relates.

(2) Without limiting subsection (1), that subsection extends to a right or remedy against—

(a) an associate in respect of whom the claim is made; or

(b) the person authorised to administer the estate of an associate in respect of whom the claim is made and who is deceased or an insolvent under administration.

(3) Subsection (1) does not apply to a right or remedy against an associate if, had the associate been a claimant in respect of the default, the claim would not be disallowed on any of the grounds set out in section 240.

(4) The fidelity authority may exercise its rights and remedies under this section in its own name or in the name of the claimant.

(5) If the fidelity authority brings proceedings under this section in the name of the claimant, it must indemnify the claimant against any costs awarded against the claimant in the proceedings.

(6) The fidelity authority may exercise its rights and remedies under this section even though any limitation periods under this Part have expired.

(7) The fidelity authority must pay into the fidelity fund any money recovered in exercising its rights and remedies under this section.

(8) If in exercising its rights and remedies under this section the fidelity authority recovers more money than that already paid to the claimant, the authority must pay the difference to the claimant after deducting costs incurred to recover the money. This subsection applies whether or not the total amount paid would otherwise exceed any relevant maximum amount fixed under section 230.