9.—(1) ITMA may make indemnification arrangements and compensation arrangements which apply in relation to registered persons and regulated persons by—
(a)establishing and maintaining one or more funds;
(b)taking out and maintaining insurance with authorised insurers; or
(c)requiring registered persons, or registered persons of any specific description, to take out and maintain insurance with authorised insurers.
(2) For the purpose of giving effect to sub-paragraph (1), ITMA may make regulations which authorise or require it to make particular arrangements and such regulations may, among other things, include provision—
(a)requiring registered persons, or registered persons of a description specified by the regulations, to pay amounts specified by the regulations to any fund which is maintained by virtue of sub-paragraph (1)(a);
(b)requiring registered persons, or registered persons of a description specified by the regulations, to make payments towards the premium payable on any insurance policy which is maintained by virtue of sub-paragraph (1)(b);
(c)prescribing the conditions which an insurance policy must satisfy for the purposes of sub-paragraph (1)(c);
(d)as to the investment of any money that forms part of a fund which is maintained by virtue of sub-paragraph (1)(a) and otherwise as to the management, administration, insurance or protection of any such fund;
(e)as to the circumstances in which a grant or other payment may or may not be made under the compensation arrangements;
(f)as to the procedure for making and determining claims under the arrangements; and
(g)as to the minimum and maximum amounts payable in respect of any claim or claim of a description specified by the regulations.
10.—(1) The powers to make indemnification arrangements or compensation arrangements which are conferred on ITMA by virtue of paragraph 9(1) and (2) may be exercised so that the arrangements apply also in relation to—
(a)a licensed body or a body which has been but no longer is a licensed body in connection with the body’s activities as a licensed body; and
(b)managers and employees of licensed bodies in connection with the activities of those licenced bodies.
(2) Regulations made by ITMA under paragraph 9(2) may also include provision for the purpose of giving effect to sub-paragraph (1) which requires licensed bodies, or licensed bodies of any specific description to—
(a)pay specified amounts to a fund which is maintained by virtue of paragraph 9(1)(a); and
(b)make payments towards the premium payable on any insurance policy which is maintained by virtue of paragraph 9(1)(b).
(3) Anything permitted by virtue of this paragraph in relation to a fund or an insurance policy may be done irrespective of the persons or bodies who contributed the money.
(4) In this paragraph and paragraph 11, “licensed body” means a body which holds a licence in force under Part 5 of the 2007 Act which is granted by ITMA.
11.—(1) If ITMA and CIPA are satisfied that it would be appropriate for them to act jointly in establishing and maintaining indemnification arrangements or compensation arrangements, the powers which are conferred on ITMA by virtue of paragraphs 9(1) and (2) and 10(1) and (2) may each be exercised so as to create a single set of arrangements which apply to—
(a)both registered persons and regulated persons as defined in paragraph 14 of this Schedule and registered persons and regulated persons as defined in paragraph 14 of Schedule 2; or
(b)both persons within paragraph 10(1)(a) or (b) of this Schedule and persons within 10(1)(a) or (b) of Schedule 2; or
(c)both persons within paragraph (a) and persons within paragraph (b).
(2) Where indemnification arrangements or compensation arrangements made by virtue of this paragraph require any registered person (as defined in paragraph 14 of this Schedule) or licensed body to make contributions to the same fund or towards the same insurance policy, anything that may be done in relation to the fund or the insurance policy may be done irrespective of the persons or bodies who contributed the money.