UNITED KINGDOM STATUTORY INSTRUMENT
2002 No. 1242
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002
Made 2nd May 2002
Laid before Parliament 3rd May 2002
Coming into force 31th May 2002
The Treasury, in exercise of the powers conferred on them by sections 355(2), 360, 426 and 428(3) of the Financial Services and Markets Act 2000, with the consent of the Secretary of State (for the purposes of articles 3 to 5 and the Schedule), hereby make the following Order:
S-1
Citation, commencement and interpretationCitation, commencement and interpretation
1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002 and comes into force on 31st May 2002.
(2) In this Order—
“the 1986 Act” means the Insolvency Act 1986;
“section 23 meeting” means a meeting held under section 23 of the 1986 Act.
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Meaning of insurer in section 360 of the Financial Services and Markets Act 2000
Meaning of insurer in section 360 of the Financial Services and Markets Act 2000
2. In article 2 of the Financial Services and Markets Act 2000 (Insolvency) (Definition of “Insurer”) Order 2001, omit the words “except section 360 (administration orders in relation to insurers),”.
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Modification of Part II of the 1986 Act in relation to insurersModification of Part II of the 1986 Act in relation to insurers
3. Part II of the 1986 Act (administration orders) applies in relation to insurers with the modifications specified in the Schedule to this Order, and accordingly section 8(5)(a)of that Act does not preclude the making of an administration order in relation to an insurer.
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Modification of the Insolvency Rules 1986 in relation to insurersModification of the Insolvency Rules 1986 in relation to insurers
4. The Insolvency Rules 1986, so far as they give effect to Part II of the 1986 Act, have effect in relation to insurers with the modification that in Rule 2.9(1) of those Rules (the hearing) there is inserted after sub-paragraph (a) the following sub-paragraph—
“(aa)
“(aa) the Financial Services Authority;”.
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Mutual credit and set-offMutual credit and set-off
5. Where an insurer, in relation to which an administration order has been made, subsequently goes into liquidation, sums due from the insurer to another party are not to be included in the account of mutual dealings rendered under rule 4.90 of the Insolvency Rules 1986 (mutual credit and set-off) if, at the time they became due, a petition had been presented to the court under section 9 of the 1986 Act (application for an administration order) in relation to the insurer.
Anne McGuire
Nick Ainger
Two of the Lords Commissioners of Her Majesty’s Treasury
2nd May 2002
Patricia Hewitt
Secretary of State
Department of Trade and Industry
2nd May 2002
SCHEDULE
Article 3
MODIFICATIONS OF PART II OF THE INSOLVENCY ACT 1986 IN RELATION TO INSURERS
1. In subsection (3) of section 13 (appointment of administrator), at the end of paragraph (c) add—
“or
(d)
(d) by the Financial Services Authority”.
2. In subsection (1) of section 18 (discharge or variation of administration order), after “company” insert “or the Financial Services Authority”.
3. In subsection (1)(a) of section 23 (statement of proposals), after “registrar of companies” insert “, the Financial Services Authority”.
4. In subsection (4) of section 24 (consideration of proposals by creditors' meeting), after “registrar of companies” insert “, the Financial Services Authority”.
5. In subsection (2)(a) of section 25 (approval of substantial revisions), after “addresses)” insert “and the Financial Services...
