Part II

Regulation of Insurance Companies

Powers of intervention

Maintenance of assets in the United Kingdom.
39
1
The
Treasury
may require—
a
in the case of a UK company, that assets of the company of a value which at any time is equal to the whole or a specified proportion of the amount of its EC liabilities shall be maintained in the European Community; and
b
in the case of an insurance company which is not a UK company, that assets of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in the United Kingdom.
2
The Treasury may direct that for the purposes of any requirement under this section assets of a specified class or description shall or shall not be treated
a
in the case of a UK company, as assets maintained in the European Community; and
b
in the case of an insurance company which is not a UK company, as assets maintained in the United Kingdom
3
The Treasury may direct that for the purposes of any requirement under this section the EC or domestic liabilities of a company, or such liabilities of any class or description, shall be taken to be the net liabilities after deducting any part of them which is reinsured.
4
A requirement imposed under this section may be framed so as to come into effect immediately after the day on which it is imposed or so as to come into effect after the expiration of a specified period (or such longer period as the Treasury may allow).
5
In this section—
a
any reference to an EC liability is a reference to a liability of the business carried on by the company in the European Community; and
b
any reference to a domestic liability is a reference to a liability of the business carried on by the company in the United Kingdom.
6
Subject to subsection (7) below, in computing the amount of any liabilities for the purposes of this section all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.
7
For the purposes of this section the value of any assets and the amount of any liabilities shall be determined in accordance with any applicable valuation regulations; and subsection (6) above shall have effect subject to any such regulations made by virtue of section 90(2) below.
Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(b)
Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65
Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)
S. 39: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 25
S. 39(1)(a)(b) substituted for s. 39(1) (1.7.1994) by S.I. 1994/1696, reg. 21(1)
Word in s. 39 substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 23 (with art. 7)
S. 39(2)(a)(b) substituted for words in s. 39(2) (1.7.1994) by S.I. 1994/1696, reg. 21(2)
Words in s. 39(3) substituted (1.7.1994) by S.I. 1994/1696, reg. 21(3)
S. 39(5) substituted (1.7.1994) by S.I. 1994/1696, reg. 21(4)