Financial Services and Markets Act 2000 Explanatory Notes

Section 142: Insurance business: regulations supplementing Authority’s rules

261.This section enables the Treasury to make regulations applicable to non-authorised persons connected with authorised persons with permission in relation to contracts of insurance, preventing them from taking actions which would weaken the effect of “asset identification rules” made by the Authority under the powers in this Part.  Breaches of these regulations are subject to criminal sanctions.

262.Subsection (3) gives the Treasury powers to make regulations which would prevent a company paying dividends or creating a mortgage or charge over its property, and which would make void any mortgages or charges made, in breach of those regulations.

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