Part I Restriction on Carrying on Insurance Business

Withdrawal of authorisation

C112AF2 Suspension of authorisation in urgent cases.

1

Where, in the case of a UK or non-EC company, it appears to the F3Treasury—

a

that one of the grounds in section 11(2) above exists in relation to the company: and

b

that the authorisation should be suspended as a matter of urgency,

the F3Treasury may direct that the company shall forthwith cease to be authorised to effect contracts of insurance, or contracts of any description specified in the direction.

2

A direction under this section—

a

shall not prevent a company from effecting a contract of insurance in pursuance of a term of a subsisting contract of insurance; and

b

unless confirmed by the F3Treasuryunder subsection (6) below, shall cease to have effect at the end of the relevant period.

3

Where the F3Treasury gives a direction under this section, F4they shall forthwith serve on the company a written notice stating—

a

the ground on which the direction is given; and

b

that the company may, within the period of one month from the date of service of the notice, make written representations to the F3Treasury and, if the company so requests, oral representations to an officer of the F5Treasury appointed for the purpose by the F3Treasury.

4

Where the F3TreasuryF6give a direction under this section on the ground set out in section 11(2)(ab) above, the F3Treasuryshall forthwith serve on any person whose fitness is in question a written notice stating—

a

the ground for giving the direction; and

b

that the person on whom the notice is served may, within the period of one month from the date of service of the notice, make written representations to the F3Treasury and, if that person so requests, oral representations to an officer of the F5Treasuryappointed for the purpose by the F3Treasury.

5

The F3Treasury shall consider any representations made in response to a notice under subsection (3) or (4) above before confirming a direction under this section.

6

At any time before the end of the relevant period, the F3Treasury may confirm a direction under this section by a written notice served on the company.

7

Where a direction under this section is so confirmed, it may not be revoked or varied; but if the Treasury subsequently F7issue to the company under section 3 above an authorisation to carry on insurance business of a class to which the direction relates, the direction shall cease to have effect in relation to such business.

8

In this section 'the relevant period’, in relation to a direction under this section, means the period of two months beginning with the date on which the direction is given.