Financial Services and Markets Act 2000

[F1 PART 1 U.K. Restrictions on enforcement

Textual Amendments

F1 Sch. 19B inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(e), Sch. 12 para. 3

Application of this Part of this Schedule U.K.

1 (1) This Part of this Schedule applies in relation to an insurer—

(a) during the period—

(i) beginning with the date on which an application is made for a write-down order in relation to the insurer, and

(ii) ending with the date on which the order is made or the application is withdrawn or dismissed;

(b) during the period—

(i) beginning with the date on which a write-down order is made in relation to the insurer, and

(ii) ending with the last day of the period of six months beginning with the day on which the write-down order takes effect (see section 377A(3)(a));

(c) during such further period as the court may order.

(2) This Part of this Schedule ceases to apply—

(a) where the court orders that it should cease to apply (and in accordance with the terms of the order), or

(b) where the write-down order ceases to have effect (because, in accordance with section 377H, each reduction in the value of a liability of the insurer ceases to have effect).

(3) The court—

(a) may make an order under sub-paragraph (1)(c) or (2)(a) only on an application by a person mentioned in sub-paragraph (4);

(b) may not specify in an order under sub-paragraph (1)(c) a period longer than six months (but may make one or more further such orders).

(4) The persons are—

(a) a person entitled to make an application for a write-down order in relation to the insurer (see section 377C(1));

(b) a person appointed under section 377G to act as the manager of the write-down order;

(c) a provisional liquidator of the insurer;

(d) the FCA.

(5) Before making an application for an order under this Part of this Schedule—

(a) a person other than the PRA or the Treasury must consult the PRA;

(b) the PRA must consult the FCA.

Moratorium on proceedings U.K.

2 (1) Where this Part of this Schedule applies in relation to an insurer, except with the permission of the court—

(a) no step may be taken to enforce security over the insurer’s property;

(b) no step may be taken to repossess goods in the insurer’s possession under a hire-purchase agreement;

(c) a landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the insurer;

(d) in Scotland, a landlord may not exercise a right of irritancy in relation to premises let to the insurer;

(e) no legal process (including legal proceedings, execution, distress or diligence) may be instituted, carried out or continued against the insurer or its property.

(2) Where the court gives permission for something to be done that would otherwise be prevented by this paragraph, it may impose a condition on, or a requirement in connection with, the permission.

(3) In this paragraph, “landlord” includes a person to whom rent is payable.

Exceptions U.K.

3 (1) This Part of this Schedule does not apply in relation to—

(a) arrangements entered into after the date on which this Part of this Schedule first applied in relation to the insurer;

(b) employment tribunal proceedings or any legal process arising out of such proceedings;

(c) proceedings, not within paragraph (b), involving a claim between an employer and a worker.

(2) Nothing in this Part of this Schedule—

(a) prevents the FCA or the PRA from exercising a function it has in relation to the insurer or any other person;

(b) prevents a consumer from taking steps to enforce a money award or direction under section 229 or 404B.

(3) Nothing in this Part of this Schedule affects the operation of—

(a) Part 7 of the Companies Act 1989 (financial markets and insolvency);

(b) the Financial Markets and Insolvency Regulations 1996 (S.I. 1996/1469);

(c) the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979);

(d) the Financial Collateral Arrangements (No.2) Regulations 2003 (S.I. 2003/3226).

(4) The Treasury may by regulations amend sub-paragraph (3).

(5) In this paragraph—

• “agency worker” has the meaning given by section 13(2) of the Employment Relations Act 1999;

• “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions;

• “employer”—

  (a)

  in relation to an agency worker, has the meaning given by section 13(2) of the Employment Relations Act 1999;

  (b)

  otherwise, has the meaning given by section 230(4) of the Employment Rights Act 1996;

• “worker” means an individual who is—

  (a)

  a worker within the meaning of section 230(3) of the Employment Rights Act 1996, or

  (b)

  an agency worker.]