The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

Form and content of accounts of insurance companies and groups

72.—(1) In Schedule 9A to the 1986 Order (form and content of accounts of insurance companies and groups)(1) Part I (individual accounts) is amended as follows.

(2) In paragraph 6—

(a) the existing text is numbered sub-paragraph (1);

(b) for “to business within Classes 1 and 2 of Schedule 2 to the 1982 Act” substitute “to business which consists of effecting or carrying out relevant contracts of general insurance”;

(c) after sub-paragraph (1) insert—

“(2) For the purposes of sub-paragraph (1), a contract of general insurance is a relevant contract if the risk insured against relates to—

(a) accident; or

(b) sickness.

(3) Sub-paragraph (2) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.”.

(3) In paragraph 9—

(a) the existing text is numbered sub-paragraph (1);

(b) in paragraph (a) of that sub-paragraph, for “business within the classes of insurance specified in Schedule 2 to the 1982 Act” substitute “business which consists of effecting or carrying out contracts of general insurance”;

(c) in paragraph (b) of that sub-paragraph, for “business within the classes of insurance specified in Schedule 1 to that Act” substitute “business which consists of effecting or carrying out contracts of long term insurance”; and

(d) after sub-paragraph (1) insert—

“(2) In sub-paragraph (1), references to—

(a) contracts of general or long term insurance; and

(b) the effecting or carrying out of such contracts,

must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section, and Schedule 2 to that Act.”.

(4) In Section B (the required format for accounts), in note (24) (Equalisation provision)(2) of the Notes on the balance sheet format for “the amount of any reserve maintained by the company under section 34A of the Insurance Companies Act 1982” substitute “the amount of any equalisation reserve maintained in respect of general business by the company, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”.

(5) In paragraph 11 (managed funds), for sub-paragraph (1)(a) substitute—

“(a) the management of which constitutes long term insurance business, and”.

(6) For paragraph 50 (equalisation reserves)(3) substitute—

“50.   The amount of any equalisation reserve maintained in respect of general business, in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000, shall be determined in accordance with such rules.”.

(7) In paragraph 81 (interpretations of Part I), in sub-paragraph (1)—

(a) omit the definition of “the 1982 Act”;

(b) for the definition of “general business” substitute—

““general business” means business which consists of effecting or carrying out contracts of general insurance;”;

(c) for the definition of “long term business” substitute—

““long term business” means business which consists of effecting or carrying out contracts of long term insurance;”;

(d) in the definition of “long term fund” for “in accordance with the provisions of the 1982 Act” substitute “in accordance with rules made by the Financial Services Authority under Part X of the Financial Services and Markets Act 2000”; and

(e) for the definition of “policy holder” substitute—

““policy holder” has the meaning given in any relevant order under section 424(2) of the Financial Services and Markets Act 2000;”.

(1)

Substituted for Parts I and II of Schedule 9, as originally enacted, by S.R. 1992/258.

(2)

Note (24) was amended (and the words substituted by this Order inserted) by the Insurance Companies (Reserves) Act 1995 (c. 29), section 3(1), (2).

(3)

Paragraph 50 was substituted by the Insurance Companies (Reserves) Act 1995 (c. 29), section 3(1), (3), and further substituted by S.I. 1996/946, regulation 13.