The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2005

Publication Date:January 01, 2005

2005No. 1644

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2005

20thJune2005

21stJune2005

1stOctober2005

The Treasury, in exercise of the powers conferred upon them by sections 360, 426 and 428(3) of the Financial Services and Markets Act 2000( 1), with the consent of the Secretary of State, hereby make the following Order:

Citation, commencement and interpretation

1.-(1) This Order may be cited as the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2005 and comes into force on 1 October 2005.

(2) In this Order-

"the 1989 Order" means the Insolvency (Northern Ireland) Order 1989( 2);

"Article 35 meeting" means a meeting held under Article 35 of the 1989 Order.

Modification of Part III of the 1989 Order in relation to insurers

2. Part III of the 1989 Order (administration orders) applies in relation to insurers with the modifications specified in the Schedule to this Order, and accordingly Article 21(5)(a)( 3) of that Order does not preclude the making of an administration order in relation to an insurer.

Modification of the Insolvency Rules (Northern Ireland) 1991 in relation to insurers

3. The Insolvency Rules (Northern Ireland) 1991( 4), so far as they give effect to Part III of the 1989 Order, have effect in relation to insurers with the modification that in Rule 2. 10(1) of those Rules (the hearing) there is inserted after sub-paragraph (a) the following sub-paragraph-

" (aa) the Financial Services Authority;".

Mutual credit and set-off

4. 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 4.096 of the Insolvency Rules (Northern Ireland) 1991 (mutual credit and set-off) if, at the time they become due, a petition has been presented to the court under Article 22 of the 1989 Order (application for an administration order) in relation to the insurer.

Tom Watson,

Gillian Merron

Two of the Lords Commissioners of Her Majesty's Treasury

20th June 2005

I consent

Paul Murphy

One of Her Majesty's Principal Secretaries of State

Northern Ireland Office 7th June 2005

SCHEDULE

Article 2

MODIFICATIONS OF PART III OF THE 1989 ORDER IN RELATION TO INSURERS

1. In paragraph (3) of Article 26 (appointment of administrator),( 5) at the end of paragraph (c) add-

" or

(d) by the Financial Services Authority".

2. In paragraph (1) of Article 30 (discharge or...

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