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Statutory Instruments

2001 No. 3626

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Control of Transfers of Business Done at Lloyd's) Order 2001

Made

7th November 2001

Laid before Parliament

8th November 2001

Coming into force

1st December 2001

The Treasury, in exercise of the powers conferred on them by sections 323 and 428(3) of the Financial Services and Markets Act 2000(1), hereby make the following Order:

Citation and commencementU.K.

1.  This Order may be cited as the Financial Services and Markets Act 2000 (Control of Transfers of Business Done at Lloyd's) Order 2001 and comes into force on 1st December 2001.

Commencement Information

I1Art. 1 in force at 1.12.2001, see art. 1

InterpretationU.K.

2.  In this Order —

“the Act” means the Financial Services and Markets Act 2000;

“the Council” and “the Society” have the same meaning as in Lloyd’s Act 1982(2);

F1...

Textual Amendments

Commencement Information

I2Art. 2 in force at 1.12.2001, see art. 1

3.  The following provisions, that is to say—

(a)sections [F2103A] 104 and [F3107 to 114A] of the Act;

(b)any regulations made under section 108 of the Act; and

(c)Part I of Schedule 12 to the Act;

apply in relation to schemes for the transfer of the whole or any part of the business carried on by one or more [F4underwriting members of the Society or by one or more persons who have ceased to be such a member (whether before, on or after 24th December 1996)] (“the members concerned”) in the same way as they apply in relation to insurance business transfer schemes, but only if the conditions specified by article 4 are satisfied.

Textual Amendments

Commencement Information

I3Art. 3 in force at 1.12.2001, see art. 1

4.  The conditions referred to in article 3 are—

(a)that the scheme results in the business transferred being carried on from an establishment of the transferee in an EEA State;

[F5(b)that the Council of Lloyd’s has—

(i)by resolution authorised one person to act, or

(ii)certified that one person has authority to act,

in connection with the transfer for the members concerned, as transferor;]

[F6(c)that a copy of the resolution or the certificate has been give to the [F7PRA] [F8and the FCA] .]

Textual Amendments

Commencement Information

I4Art. 4 in force at 1.12.2001, see art. 1

5.—(1) The provisions which apply by virtue of paragraph (a) and (b) of article 3 do so as if—

(a)any reference to the authorised person concerned were a reference to the members concerned; F9...

[F10(aa)the members concerned were authorised persons with permission to carry on the regulated activities of effecting a contract of insurance as principal and carrying out a contract of insurance as principal; and]

(b)anything done in connection with the transfer by the person authorised [F11, or the person certified to have authority,] in accordance with [F12paragraph (b)] of article 4 had been done by the members concerned for whom he acted.

(2) In the application of Part I of Schedule 12 to the Act to the members concerned, the conditions in sub-paragraphs (2)(a), (3)(a) and (4)(a) of paragraph 1 of that Schedule are treated as satisfied.

[F13(2A) Paragraphs 2, 3, 4 and 5 of Part 1 of Schedule 12 to the Act apply as if the members concerned were authorised persons with permission to carry on the regulated activities of effecting a contract of insurance as principal and carrying out a contract of insurance as principal.]

[F14(3) A transfer scheme carried out by virtue of this Order may transfer to an establishment of the transferee business written on different syndicates and in different years of account of syndicates.]

Textual Amendments

Commencement Information

I5Art. 5 in force at 1.12.2001, see art. 1

Nick Ainger

Tony McNulty

Two of the Lords Commissioners of Her Majesty’s Treasury

Explanatory Note

(This note is not part of the Order)

This Order applies various provisions of Part VII of the Financial Services and Markets Act 2000 (“the Act”), relating to insurance business transfers, to transfers of business from members (and certain former members) of Lloyd's.

Article 3 lists the provisions of the Act to which the Order applies. Article 4 makes the application of these provisions subject to certain conditions. Article 5 requires the provisions to be read with certain textual amendments.