Part XV

The Financial Services Compensation Scheme

Provisions of the scheme

Continuity of long-term insurance policies.
216
1
The compensation scheme may, in particular, include provision requiring the scheme manager to make arrangements for securing continuity of insurance for policyholders, or policyholders of a specified class, of relevant long-term insurers.
2
“Relevant long-term insurers” means relevant persons who—
a
have permission to effect or carry out contracts of long-term insurance; and
b
are unable, or likely to be unable, to satisfy claims made against them.
3
The scheme may provide for the scheme manager to take such measures as appear to him to be appropriate—
a
for securing or facilitating the transfer of a relevant long-term insurer’s business so far as it consists of the carrying out of contracts of long-term insurance, or of any part of that business, to another authorised person;
b
for securing the issue by another authorised person to the policyholders concerned of policies in substitution for their existing policies.
4
The scheme may also provide for the scheme manager to make payments to the policyholders concerned—
a
during any period while he is seeking to make arrangements mentioned in subsection (1);
b
if it appears to him that it is not reasonably practicable to make such arrangements.
5
A provision of the scheme made by virtue of section 213(3)(b) may include power to impose levies for the purpose of meeting expenses of the scheme manager incurred in—
a
taking measures as a result of any provision of the scheme made by virtue of subsection (3);
b
making payments as a result of any such provision made by virtue of subsection (4).
Pt. XV (ss. 212-224) excluded (27.4.2002) by The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544), art. 9J (as inserted by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 (S.I. 2002/682), arts. 1(2), 4)
Pt. XV (ss. 212-224) modified (2.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments and Transitional Provisions) (Credit Unions) Order 2002 (S.I. 2002/1501), art. 5
Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))
Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)
Pt. 15 modified (8.10.2008 at 12.15 p.m.) by The Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2674), art. 15 (with art. 16(8))