The Insurance Companies (Third Insurance Directives) Regulations 1994

Authorised insurers

57

Section 22 of the 1986 Act (authorised insurers) shall have effect as if it included provision that an EC company which is authorised in its home State to carry on insurance business which is investment business is an authorised person as respects—

• (a) any insurance business—

• (i) which it is not precluded by Part I of Schedule 2F to the 1982 Act from carrying on; and

• (ii) the carrying on of which constitutes the carrying on of investment business in the United Kingdom;

• (b) the provision of any insurance—

• (i) which it is not precluded by Part I of Schedule 2F to the 1982 Act from providing; and

• (ii) provision of which constitutes the carrying on of investment business in the United Kingdom; and

• (c) any other investment business which it is entitled under the law of its home State to carry on.

Conduct of investment business

58

• (1) Section 47A of the 1986 Act[^f00045] (statements of principle) shall have effect as if it included provision that a statement of principle issued under that section shall not include, as respects any EC company, provision as to any matter for which, under the third long term insurance Directive, responsibility is reserved to the supervisory authority in the company’s home State.

• (2) Section 48 of that Act[^f00046] (conduct of business rules) shall have effect as if it included provision that rules under that section shall not include, as respects any EC company, provision as to any matter for which, under that Directive, responsibility is so reserved.

• (3) Section 52 of that Act[^f00047] (notification regulations) shall have effect as if it included provision that regulations under that section shall not require an EC company to furnish information which is not reasonably required for purposes connected with the exercise of functions under that Act or this Part of these Regulations.

Powers of intervention

59

• (1) Section 64 of the 1986 Act (scope of powers of intervention) shall have effect in relation to an authorised person who is an EC company as if subsection (1)(b) (fitness to carry on investment business) were omitted.

• (2) Section 65 of that Act (restriction of business) shall have effect as if it included provision that—

• (a) where it appears to the Board that its power to impose a prohibition under that section is exercisable in relation to an EC company, the Board shall require the company to remedy the situation;

• (b) if the company fails to comply with the requirement under paragraph (a) above within a reasonable time, the Board shall give a notice to that effect to the supervisory authority in the company’s home State requesting that authority—

• (i) to take all appropriate measures for the purpose of ensuring that the company remedies the situation which has given rise to the issue of the notice; and

• (ii) to inform the Board of the measures it proposes to take or has taken or the reasons for not taking such measures;

• (c) subject to paragraph (d) below, the Board shall not impose a prohibition under that section on the company unless it is satisfied—

• (i) that the supervisory authority has failed or refused to take measures for the purpose mentioned in sub-paragraph (i) of paragraph (b) above; or

• (ii) that the measures taken by that authority have proved inadequate for that purpose, and it has informed that authority of its intention to do so;

• (d) where the Board decides that it should impose a prohibition under that section on an EC company as a matter of urgency in order to protect the interests of investors, the Board may take action—

• (i) before complying with paragraphs (a) and (b) above; or

• (ii) where it has complied with those paragraphs, before it is satisfied, and has informed the supervisory authority, as mentioned in paragraph (c) above;

• (e) where the Board imposes a prohibition under that section on an EC company, the Board shall inform the company in writing of its reasons for doing so.

• (3) In this regulation “the Board” means The Securities and Investments Board.

Information and auditors

60

• (1) Section 104 of the 1986 Act (power to call for information) shall have effect as if references to functions under that Act included references to functions under this Part of these Regulations.

• (2) Section 107 of that Act[^f00048] (appointment of auditors) shall have effect as if the reference in subsection (1)(b) to a member of a recognised self-regulating organisation did not include a reference to an EC company.

Qualifications of designated agency

61

Paragraph 5 of Schedule 7 to the 1986 Act (qualifications of designated agency) shall have effect as if it included provision that, for the purpose of complying with the third long term insurance Directive, the agency must be able and willing to co-operate, by the sharing of information and otherwise, with supervisory authorities in other member States.

Prevention of restrictive practices

62

• (1) Section 119 of the 1986 Act[^f00049] (recognised self-regulating organisations, investment exchanges and clearing houses) shall have effect as if any reference in subsections (1) and (2) to the protection of investors included a reference to compliance with the third long term insurance Directive.

• (2) Section 121 of that Act[^f00050] (designated agencies) shall have effect as if any reference to the protection of investors included a reference to compliance with the third long term insurance Directive.

Application of 1986 Act to insurance companies

63

• (1) Section 129 of the 1986 Act (application of investment business provisions to regulated insurance companies) shall have effect as if the reference to regulated insurance companies included a reference to EC companies.

• (2) In paragraph 2 of Schedule 10 to that Act (regulated insurance companies) shall have effect as if—

• (a) in sub-paragraph (2), the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company; and

• (b) in sub-paragraph (3A)[^f00051], the references to section 81B of that Act were references to paragraph 18 of Schedule 2F to that Act.

Insurance contracts effected in contravention of 1982 Act

64

Section 132 of the 1986 Act (insurance contracts effected in contravention of section 2 of 1982 Act) shall have effect in relation to a contract of insurance which is entered into by a person—

• (a) in the course of carrying on insurance business in contravention of paragraph 1 or 4 of Schedule 2F to the 1982 Act or paragraph 1 of Schedule 2G to that Act; or

• (b) in the course of providing insurance in contravention of paragraph 8, 11, 18, 19 or 23 of the said Schedule 2F or paragraph 5, 9 or 11 of the said Schedule 2G,

as it has effect in relation to a contract of insurance which is entered into by a person in the course of carrying on insurance business in contravention of section 2 of the 1982 Act.

Industrial assurance

65

Section 139(1) of the 1986 Act (industrial assurance) shall have effect as if the reference to carrying on insurance business in contravention of section 2 of the 1982 Act included a reference to carrying on insurance business in contravention of Part I of Schedule 2F to that Act.

Restrictions on disclosure of information

66

• (1) Subject to paragraph (2) below, Part I of Schedule 2B to the 1982 Act (restriction on disclosure of information) shall apply, in place of sections 179 and 180 of the 1986 Act, in relation to any information which—

• (a) was obtained by the Secretary of State or a designated agency for the purposes of, or in the discharge of, functions under that Act or any rules or regulations made under that Act (whether or not by virtue of any requirement to supply it made under those provisions); and

• (b) relates to the business or other affairs of a UK, EC or non-EC company, or any controller, manager, chief executive, general representative, agent or employee of such a company.

• (2) Part I of Schedule 2B to the 1982 Act as so applied shall have effect as if—

• (a) any reference to the Secretary of State (except in the Table to paragraph 3(1) and paragraphs 4(2) and 5(3)(b) and (4)(b)) were a reference to the Secretary of State or, as the case may require, the designated agency in question;

• (b) any reference to the 1982 Act were a reference to the 1986 Act; and

• (c) the reference to the 1986 Act in item 1 of that Table were a reference to the 1982 Act.

• (3) In subsection (1) of section 180 of the 1986 Act (exceptions from restrictions on disclosure), in paragraph (p), for the words “section 44” substitute the words “section 43A or 44”.

Functions under this Part

67

The functions of The Securities and Investments Board under this Part of these Regulations shall be treated for the purposes of the 1986 Act and the Transfer of Functions (Financial Services) Order 1992[^f00052] as if they were functions under Part VI of that Act which—

• (a) had been functions of the Secretary of State; and

• (b) had been transferred to that Board by the Financial Services Act 1986 (Delegation) Order 1987[^f00053].

PART IV — SUPPLEMENTAL

Minor and consequential amendments and saving

68

• (1) The provisions mentioned in Schedule 8 to these Regulations shall have effect subject to the amendments there specified, being minor amendments or amendments consequential on the provisions of these Regulations.

• (2) For the purposes of that Schedule an EC company—

• (a) lawfully carries on insurance business, or insurance business of any description, in the United Kingdom if it does so through a branch in respect of which such of the requirements of Part I of Schedule 2F to the 1982 Act as are applicable have been complied with; and

• (b) lawfully provides insurance, or insurance of any description, in the United Kingdom if such of those requirements as are applicable have been complied with in respect of the insurance.

• (3) Nothing in regulations 7 and 52 above shall affect the operation of paragraph 9 of Part II of the Schedule to the Building Societies (Designation of Qualifying Bodies) (No.3) Order 1993[^f00054].

Transitional provisions: EC companies

69

• (1) If an insurance company which immediately after the commencement date is an EC company was immediately before that date lawfully carrying on insurance business of any class or part of a class in the United Kingdom, it shall be treated for the purposes of the 1982 Act as if the requirements of paragraph 1 or, as the case may require, paragraph 4 of Schedule 2F to that Act had been complied with in relation to insurance business of that class or part of a class.

• (2) If an insurance company which immediately after the commencement date is an EC company was immediately before that date lawfully providing insurance of any class or part of a class in the United Kingdom, it shall be treated for the purposes of the 1982 Act as if the requirements of paragraph 8 of Schedule 2F to that Act had been complied with in relation to insurance of that class or part of a class.

Transitional provisions: UK insurers

70

• (1) If—

• (a) an insurance company which immediately after the commencement date is a UK company, or

• (b) a member of Lloyd's,

was immediately before that date lawfully carrying on insurance business of a class or part of a class in a member State other than the United Kingdom, it shall be treated for the purposes of the 1982 Act as if the requirements of paragraph 1 of Schedule 2G to that Act had been complied with in relation to insurance business of that class or part of a class.

• (2) If—

• (a) an insurance company which immediately after the commencement date is a UK company, or

• (b) a member of Lloyd's,

was immediately before that date lawfully providing insurance of a class or part of a class in a member State other than the United Kingdom, it shall be treated for the purposes of the 1982 Act as if the requirements of paragraph 5 of Schedule 2G to that Act had been complied with in relation to insurance of that class or part of a class.

Transitory provision

71

• (1) This paragraph applies if in any member State (“the defaulting State”) the third general insurance Directive and the third long term insurance Directive are not fully or substantially implemented on or before the commencement date.

• (2) Until such date (“the transitional date”) as those Directives are fully or substantially implemented in the defaulting State, the 1982 Act and the 1986 Act shall have effect in relation to an insurance company whose head office is in that State as if that State were an EFTA State rather than a member State.

• (3) Regulation 69 above shall have effect in relation to an insurance company whose head office is in the defaulting State as if any reference to the commencement date were a reference to the transitional date.

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

SCHEDULE 4

SCHEDULE 5

SCHEDULE 6

SCHEDULE 7

SCHEDULE 8 — MINOR AND CONSEQUENTIAL AMENDMENTS

PART I — PRIMARY LEGISLATION

Judicial Pensions Act (Northern Ireland) 1951 (c. 20 (N.I.))

1

• (1) Section 11A(2) of the Judicial Pensions Act (Northern Ireland) 1951[^f00085] (voluntary contributions) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

• (2) In Schedule 2A to the Judicial Pensions Act (Northern Ireland) 1951[^f00086] (transfer of accrued benefits), paragraph 1 shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act (or any similar previous enactment) to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

County Courts Act (Northern Ireland) 1959 (c. 25 (N.I.))

2

• (1) Section 127A(2) of the County Courts Act (Northern Ireland) 1959[^f00087] voluntary contributions) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

• (2) In Schedule 2A to the County Courts Act (Northern Ireland) 1959[^f00088] (transfer of accrued benefits), paragraph 1 shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act (or any similar previous enactment) to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

Resident Magistrates' Pensions Act (Northern Ireland) 1960 (c. 2 (N.I.))

3

• (1) Section 9A(2) of the Resident Magistrates' Pensions Act (Northern Ireland) 1960[^f00089] voluntary contributions) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

• (2) In Schedule 3 to the Resident Magistrates' Pensions Act (Northern Ireland) 1960[^f00090] (transfer of accrued benefits), paragraph 1 shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act (or any similar previous enactment) to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

Solicitors Act 1974 (c. 47)

4

Section 23(2) of the Solicitors Act 1974[^f00091] (unqualified person not to prepare papers for probate etc.) shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act included a reference to an EC company lawfully carrying on insurance business in the United Kingdom.

Policyholders Protection Act 1975 (c. 75)

5

• (1) Section 3(2) of the Policyholders Protection Act 1975[^f00092] (authorised insurance companies) shall have effect as if the reference to being authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on insurance business of any class in the United Kingdom included a reference to being an EC company which is lawfully carrying on insurance business of any class in the United Kingdom.

• (2) After subsection (2) of section 21 of that Act (levies on authorised insurance companies)insert—

(2A) The Board may, with the consent of the Secretary of State, waive (in whole or in part) any levy imposed under subsection (1) or (2) above on an EC company if it considers it appropriate to do so, having regard to the extent to which provision is made for the indemnification of qualifying policyholders— (a) under the law of the member State in which the head office of the EC company is situated; or (b) by virtue of any arrangements which are in force in that State. (2B) In subsection (2A) above— - ‘EC company’ has the same meaning as in the Insurance Companies Act 1982; - ‘qualifying policyholder’ means a policyholder who is eligible for the assistance or protection of the Board in accordance with any provision of sections 6 to 16 above.

Housing (Northern Ireland) Order 1981 (S.I. 1981/156 (N.I.3))

6

In Schedule 10 to the Housing (Northern Ireland) Order 1981 (institutions recognised for purposes of Article 153), paragraph 5 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Judicial Pensions Act 1981 (c. 20)

7

• (1) Section 33A(2) of the Judicial Pensions Act 1981[^f00093] (voluntary contributions) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

• (2) In Schedule 1A to the Judicial Pensions Act 1981[^f00094] (transfer of accrued benefits), paragraph 1 shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act (or any similar previous enactment) to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

Data Protection Act 1984 (c. 35)

8

Section 30 of the Data Protection Act 1984 (exemption for regulation of financial services etc.) shall have effect as if the reference in subsection (1) to prejudicing the proper discharge of statutory functions to which that section applies included a reference to contravening—

• (a) Article 16 of Council Directive 92/49/EEC of 18 June 1992; or

• (b) Article 15 of Council Directive 92/96/EEC of 10 November 1992.

Companies Act 1985 (c. 6)

9

• (1) The following provisions of the Companies Act 1985, namely—

• (a) section 246(4)[^f00095] (exemptions for small and medium-sized companies);

• (b) section 248(2)[^f00096] (exemptions for small and medium-sized groups); and

• (c) section 450(1)[^f00097] (punishment for destroying, mutilating etc.company documents),

shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company lawfully carrying on insurance business in the United Kingdom.

• (2) In subsection (1) of section 449 of the Companies Act 1985 (provision for security of information obtained), in paragraph (cc)[^f00098], for the words “under section 44” substitute the words “or appointed under section 43A or 44”.

• (3) In subsection (3) of section 451A of that Act[^f00099] (disclosure of information by Secretary of State or inspector), in paragraph (b), for the words “under section 44” substitute the words “or appointed under section 43A or 44”.

• (4) In subsection (3) of section 452 of that Act[^f00100] (privileged information), for the words “section 44(2) to (4)” substitute the words “section 43A or 44(2) to (4)”.

• (5) In subsection (1) of section 460 of that Act (order on application of Secretary of State), for the words “section 44(2) to (6)” substitute the words “section 43A or 44(2) to (6)”.

• (6) In the case of an EC company, section 720 of that Act (certain companies to publish periodical statement) does not apply if the company complies with provisions of law of its home State as to the accounts and balance sheet to be prepared annually and deposited with the supervisory authority in that State by such a company.

Housing Act 1985 (c. 68)

10

Section 622 of the Housing Act 1985 (minor definitions: general) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Housing Associations Act 1985 (c. 69)

11

Section 106(1) of the Housing Associations Act 1985 (minor definitions: general) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Financial Services Act 1986 (c. 60)

12

Section 134 of the Financial Services Act 1986 (which is superseded by regulations 50 and 52 above) shall cease to have effect.

Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I.6))

13

• (1) The following provisions of the Companies (Northern Ireland) Order 1986, namely—

• (a) Article 254(4)[^f00101] (exemptions for small and medium-sized companies);

• (b) Article 256(2)[^f00102] (exemption for small and medium-sized groups); and

• (c) Article 443(1)[^f00103] (punishment for destroying, mutilating etc.company documents),

shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business in the United Kingdom.

• (2) In paragraphs (1)(cc) and (3)(c) of Article 442 of that Order[^f00104] (provision for security of information obtained), for the words “under section 44” substitute the words “or appointed under section 43A or 44”.

• (3) In paragraph (3)(b) of Article 444A of that Order[^f00105] (disclosure of information by Department or inspector), for the words “under section 44” substitute the words “or appointed under section 43A or 44”.

• (4) In paragraph (3) of Article 445 of that Order[^f00106] (privileged information), for the words “section 42(2) to (4)” substitute the words “section 43A or 44(2) to (4)”.

• (5) In paragraph (1)(a) of Article 453 of that Order (order on application of Department), for the words “section 42(2) to (6)” substitute the words “section 43A or 44(2) to (6)”.

• (6) In the case of an EC company, Article 669 of that Order (certain companies to publish periodical statement) does not apply if the company complies with provisions of law of its home State as to the accounts and balance sheet to be prepared annually and deposited with the supervisory authority in that State by such a company.

Banking Act 1987 (c. 22)

14

• (1) In subsection (1) of section 84 of the Banking Act 1987[^f00107] (disclosure for facilitating discharge of functions by other supervisory authorities), in entry No.4 in the Table, for the words “authorised by the Secretary of State under section 44” substitute the words “appointed or authorised by the Secretary of State under section 43A or 44”.

• (2) In Schedule 2 to the Banking Act 1987 (exempted persons), paragraph 8 shall have effect as if the reference to an institution which is for the time being authorised under section 3 or 4 of the 1982 Act to carry on insurance business of a class specified in Schedule 1 or 2 to that Act included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Housing (Scotland) Act 1987 (c. 26)

15

Section 338 of the Housing (Scotland) Act 1987 (interpretation) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Criminal Justice Act 1987 (c. 38)

16

In subsection (6) of section 3 of the Criminal Justice Act 1987 (disclosure of information), in paragraph (k), for the words “section 44(2)” substitute the words “section 43A or 44(2)”.

Criminal Justice (Scotland) Act 1987 (c. 41)

17

In subsection (5) of section 54 of the Criminal Justice (Scotland) Act 1987 (disclosure of information), in paragraph (l), for the words “section 44(2)” substitute the words “section 43A or 44(2)”.

Companies Act 1989 (c. 40)

18

In subsection (4) of section 87 of the Companies Act 1989 (exceptions from restrictions on disclosure), in the third entry in the Table, for the words “under section 44” substitute the words “or appointed under section 43A or 44”.

Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40)

19

Subsection (2) of section 19 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (executry services by recognised financial institutions) shall have effect as if the reference to an insurance company which is authorised under section 3 or 4 of the 1982 Act included a reference to an EC company which is lawfully carrying on insurance business in the United Kingdom.

Courts and Legal Services Act 1990 (c. 41)

20

The following provisions of the Courts and Legal Services Act 1990, namely—

• (a) section 37(8) (authorisation of practitioners); and

• (b) section 48(4) (investigations on behalf of the Board),

shall have effect as if the reference to an insurance company which is authorised under section 3 or 4 of the 1982 Act included a reference to an EC company which is lawfully carrying on insurance business in the United Kingdom.

Northern Ireland (Emergency Provisions) Act 1991 (c. 24)

21

In paragraph 6(2)(k) of Schedule 5 to the Northern Ireland (Emergency Provisions) Act 1991 (restriction on disclosure of information), for the words “section 44(2)” substitute the words “section 43A or 44(2)”.

Judicial Pensions and Retirement Act 1993 (c. 8)

22

• (1) Section 10(4) of the Judicial Pensions and Retirement Act 1993 (additional benefits from voluntary contributions) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

• (2) In Schedule 2 to the Judicial Pensions and Retirement Act 1993 (transfer of accrued benefits),paragraph 1 shall have effect as if the reference to an insurance company authorised under section 3 or 4 of the 1982 Act (or any similar previous enactment) to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

PART II — SUBORDINATE LEGISLATION

Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 (S.I. 1975/1023)

23

• (1) In Part III of Schedule 1 to the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 (regulated occupations), paragraph 3 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company lawfully carrying on insurance business in the United Kingdom.

• (2) In Part IV of that Schedule (interpretation), the definition of “insurance company” shall have effect as if the reference to section 7 of the 1982 Act were a reference to sections 96C and 96D of that Act.

British Railways Board (Winding up of Closed Pension Funds) Order 1978 (S.I. 1978/1358)

24

Article 1 of the British Railways Board (Winding up of Closed Pension Funds) Order 1978 (commencement, citation and interpretation) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies and which is authorised by or under section 3 or 4 of that Act to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

Rehabilitation of Offenders Act 1974 (Exceptions) Order (Northern Ireland) 1979 (S.R. 1979/195)

25

In Part III of Schedule 1 to the Rehabilitation of Offenders Act 1974 (Exceptions) Order (Northern Ireland) 1979 (regulated occupations), paragraph 2 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company lawfully carrying on insurance business in the United Kingdom.

Mortgage Indemnities (Recognised Bodies) Order 1984 (S.I. 1984/1555)

26

Schedule 2 to the Mortgage Indemnities (Recognised Bodies) Order 1984 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Building Societies (Mobile Home Loans) Order 1986 (S.I. 1986/1877)

27

Article 2 of the Building Societies (Mobile Home Loans) Order 1986 (interpretation) shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Local Authorities (Recognised Bodies for Heritable Securities Indemnities)M (Scotland) Order 1987 (S.I. 1987/1388 (S.104))

28

In Schedule 2 to the Local Authorities (Recognised Bodies for Heritable Securities Indemnities) (Scotland) Order 1987 (classes or descriptions of bodies designated for the purposes of section 31 of the Tenants' Rights, etc.(Scotland) Act 1980), paragraph 1 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Housing Corporation (Recognised Bodies for Heritable Securities Indemnities) (Scotland) Order 1987 (S.I. 1987/1389 (S.105))

29

In Schedule 2 to the Housing Corporation (Recognised Bodies for Heritable Securities Indemnities) (Scotland) Order 1987 (classes or descriptions of bodies designated for the purposes of section 86 of the Housing Associations Act 1985), paragraph 1 shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Local Government Superannuation (Scotland) Regulations 1987 (S.I.1987/1850 (S.128))

30

In Schedule 7A to the Local Government Superannuation (Scotland) Regulations 1987[^f00108] (additional voluntary contributions), paragraph 11 shall have effect as if the reference to a person authorised under section 3 or 4 of the 1982 Act to carry on long term business and acting through a branch or agency in the United Kingdom included a reference to an EC company which is lawfully carrying on long term insurance business, or providing long term insurance, in the United Kingdom.

Banking Act 1987 (Advertisements) Regulations 1988 (S.I. 1988/645)

31

Regulation 2(3) of the Banking Act 1987 (Advertisements) Regulations 1988 (application of regulations) shall have effect as if the reference to a body authorised under section 3 or 4 of the 1982 Act to carry on insurance business of a class specified in Schedule 1 or 2 to that Act included a reference to an EC company which is lawfully carrying on insurance business, or providing insurance, in the United Kingdom.

Insurance Companies (Transfer of Long Term Business) Regulations 1990 (S.I. 1990/1207)

32

The Insurance Companies (Transfer of Long Term Business) Regulations 1990 (which are superseded by regulation 28 above) shall cease to have effect.

Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1992 (S.I.1992/2649)

33

Regulation 9 of the Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1992 (investment of contributions) shall have effect as if the reference to a body authorised under section 3 or 4 of the 1982 Act to carry on long term business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business, or providing ordinary long term insurance, in the United Kingdom.

Insurance Companies (Amendment) Regulations 1992 (S.I. 1992/2890)

34

In the Insurance Companies (Amendment) Regulations 1992, regulation 10 (which is superseded by regulation 64 above) shall cease to have effect.

Local Government (Superannuation) Regulations (Northern Ireland) 1992 (S.R. 1992/547)

35

In Schedule 6 to the Local Government (Superannuation) Regulations (Northern Ireland) 1992 (further additional contributions), paragraph 10 shall have effect as if the reference to a person authorised under section 3 or 4 of the 1982 Act to carry on long term business and acting through a branch or agency in the United Kingdom included a reference to an EC company which is lawfully carrying on long term business, or providing long term insurance, in the United Kingdom.

Money Laundering Regulations 1993 (S.I. 1993/1933)

36

In regulation 16(6) of the Money Laundering Regulations 1993 (persons subject to duty to report evidence of money laundering), after paragraph (f) insert—

(fa) a person appointed under section 43A of the Insurance Companies Act 1982;

Parliamentary Pensions (Additional Voluntary Contributions Scheme) Regulations 1993 (S.I.1993/3252)

37

The following provisions of the Parliamentary Pensions (Additional Voluntary Contributions Scheme) Regulations 1993, namely—

• (a) regulation 6(2) (investment of contributions); and

• (b) regulation 9(2) (purchase of pensions),

shall have effect as if the reference to an insurance company to which Part II of the 1982 Act applies and which is authorised under section 3 or 4 of that Act to carry on ordinary long term insurance business included a reference to an EC company which is lawfully carrying on ordinary long term insurance business in the United Kingdom.

Signed

Neil Hamilton — Parliamentary Under-Secretary of State, — Department of Trade and Industry — 27th June 1994

Explanatory note

(This note is not part of the Regulations)

These Regulations, which come into force on 1st July 1994, make amendments to the Insurance Companies Act 1982 (“the 1982 Act”) and the Financial Services Act 1986 (“the 1986 Act”).

The Directives The Regulations give effect to provisions of Council Directive 92/49/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (OJ No.L228, 11.8.92, p.1); and of Council Directive 92/96/EEC on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (OJ No.L360, 9.12.92, p.1) (“the Directives”).One of the principal purposes of the Directives is to introduce for direct insurance business the principle, which has already been adopted in the banking sector, of home State control.Under this system each member State assumes sole responsibility for the authorisation and supervision of the business carried on throughout the EC by undertakings having their head office in that State. The Directives also provide for further harmonisation of member States' rules concerning the authorisation and regulation of insurance undertakings.

Part I Part I of the Regulations makes provision for the citation and commencement of the Regulations and contains interpretation provisions.

Part II Part II of the Regulations contains amendments to the 1982 Act.Chapter I amends Part I of the Act, which is concerned with the authorisation of insurance business.It extends the list of classes of long term business in Schedule 1 to the Act (regulation 3).It inserts into the Act the definition of “EC company” and excludes from the authorisation requirement under section 2 of the Act insurance business carried on in the United Kingdom by such companies which meet specified conditions (regulation 4). It also inserts into the Act the definitions of “UK company” and “non-EC company” and introduces the requirement that the Secretary of State shall not authorise such companies under section 3 of the Act if it appears to him that the criteria of sound and prudent management-set out in Schedule 1-may not be fulfilled (regulation 5).It amends the restriction on the extent to which companies may be authorised to carry on both long term and general insurance business, as it applies in respect of the combination of long term and accident and health insurance business (regulation 6), and the provisions of the Act concerning the withdrawal of authorisation (regulations 10 and 12).It also provides the Secretary of State with a new power to suspend the authorisation of a UK or non-EC company where it appears to him that this should be done as a matter of urgency (regulation 11). Chapter II amends Part II of the 1982 Act, which is concerned with the regulation ofinsurance business.Except in certain specified circumstances, this Part of the Act no longer applies to EC companies (regulation 13).The principal changes relate to: the adequacy of the assets by which UK companies cover the liabilities of their insurance business and the adequacy of the premiums payable under their long term business contracts (regulations 17 and 18), the grounds on which powers of intervention under the Act are exercisable (regulation 19), the power of the Secretary of State to require a company to maintain within the United Kingdom assets to a specified value (regulation 21), new powers which enable the Secretary of State to obtain, on specified grounds, an injunction to prohibit a UK company from disposing of assets to the value of the liabilities of its business in the EC (regulation 22) and to appoint persons to carry out investigations to assist him in carrying out certain of his functions under the Act (regulation 23), the power of the Secretary of State to obtain information and to impose requirements for the protection of policyholders (regulations 24 and 25), restrictions on the disclosure of information relating to individual insurance undertakings except in specified circumstances and for specified purposes (regulations 26 and 27 and Schedule 2), the transfer from one insurance undertaking to another of rights and obligations under contracts of insurance (regulations 28 to 30 and Schedule 3), the grounds on which the Secretary of State may petition for the winding up of a UK company (regulation 30), the approval of proposed managing directors, chief executives and controllers of UK or non-EC companies and of the acquisition by existing controllers of holdings in UK companies, including new powers enabling the Secretary of State to seek further information before deciding whether to serve a notice of objection in such cases, to make the giving of approval subject to compliance with such conditions as he may impose, to serve a notice of objection where the requisite notice has not been given, and in respect of existing controllers of such companies, and, where a person has become or continues to be a controller of, or obtained or retained a holding in, a UK company in breach of the provisions of the Act, to impose specified restrictions in respect of shares in the company held by that person or to apply to the court for an order directing that such shares shall be sold (regulations 32 to 35 and Schedule 4), and the duty to notify changes of directors, controllers and managers (regulations 36 and 37). Chapter III amends Part III of the 1982 Act, which is concerned with the conduct ofinsurance business.The changes relate to the information and statutory notices to be provided to policy holders and potential policy holders (regulations 40 to 43 and Schedule 5) and the conduct of linked long term insurance business (regulation 44). Chapter IV replaces the whole of Part IIIA of the 1982 Act, with the provisions of Schedules 6 and 7 relating to the recognition in the United Kingdom of companies having their head office in one of the other States of the European Economic Area and to the recognition of United Kingdom insurers in such States (regulations 45 and 46).Schedule 6 contains a new Schedule 2F to the Act which sets out procedural requirements in respect of EC companies which propose to carry on direct insurance or reinsurance business or to provide insurance in the United Kingdom and in respect of companies which have their head office in an EFTA State which propose to provide insurance in the United Kingdom, including the information to be provided and in respect of changes to that information.It also specifies the Secretary of State’s powers of intervention in respect of such companies.Schedule 7 contains a new Schedule 2G to the Act which sets out procedural requirements in respect of United Kingdom insurers which propose to carry on direct insurance business or to provide insurance in another member State, including the information to be provided and the criteria to be fulfilled by the insurer and in respect of changes to that information. It also sets out procedural requirements in respect of United Kingdom insurers which propose to provide insurance in an EFTA State, or to provide insurance in the United Kingdom through a branch in another State of the European Economic Area. Chapter V amends Part IV of the 1982 Act, which is concerned with special classes of insurers.The changes relate to proposed transfers of industrial assurance business (regulation 47) and the powers of the Secretary of State in relation to, and transfers of insurance business to or from, Lloyd’s underwriters (regulation 48). Chapter VI amends Schedule 3A to the 1982 Act, which is concerned with the law applicable to certain insurance contracts (regulation 49) and inserts new and amended interpretation provisions into the Act (regulations 50 to 55).

Part III Part III of the Regulations amends the 1986 Act.The principal changes relate to: the rules of self-regulating organisations as they apply to EC companies (regulation 56), the automatic recognition of such companies as authorised persons under the 1986 Act (regulation 57), the conduct of investment business by such companies (regulation 58), the powers of intervention in respect of such companies (regulation 59), an extension of the power of the Securities and Investments Board to obtain information from authorised persons and certain specified recognised bodies where this information is required for the exercise of the Board’s functions under Part III of the Regulations, and provision that the requirement to appoint an auditor shall no longer apply to EC companies (regulation 60), a new requirement for designated agencies to co-operate with supervisory authorities in other member States for the purpose of complying with the Directives (regulation 61), a modification of the provisions of the Act which prevent restrictive practices being adopted by designated agencies and certain other bodies (regulation 62), an extension of the provisions of the 1986 Act concerning contracts effected in contravention of section 2 of the 1982 Act so that they apply to contracts effected in contravention of Part IIIA of the 1982 Act as inserted by the Regulations (regulation 64), and restrictions on disclosure of information obtained by the Secretary of State or a designated agency for the exercise of his or its functions (regulation 66).

Part IV Part IV of the Regulations and Schedule 8 contain minor and consequential amendments and transitional and transitory provisions (regulations 68 to 71).

Footnotes

[^f00001]: S.I. 1972/1811; S.I. 1975/427; S.I. 1976/2141; S.I. 1982/847; S.I. 1990/600.

[^f00002]: 1972 c. 68.

[^f00003]: 1982 c. 50; as amended by the European Economic Area Act 1993 (c. 51).

[^f00004]: 1986 c. 60.

[^f00005]: Subsection (3A) was inserted by S.I. 1993/3127, reg 2(2).

[^f00006]: Subsection (5A) was inserted by S.I. 1993/3127, reg. 2(3).

[^f00007]: Paragraph (aa) was inserted by S.I. 1990/1333, reg 8(1) and amended by S.I. 1993/174, reg 2.

[^f00008]: Subsection (3) was amended by S.I. 1993/3127, reg 3(3).

[^f00009]: Subsection (2) was amended by S.I. 1993/3127, reg 3(5).

[^f00010]: Sub-paragraph (ia) was inserted by S.I. 1990/1333, reg 8(2) and amended by S.I.1993/174, reg 2(1)(b).

[^f00011]: Subsection (3)(a) was amended by S.I. 1993/3127, reg 3(7).

[^f00012]: Subsection (2) was amended by the Companies Act 1989 (c. 40), section 77(2).

[^f00013]: Section 47A was inserted by the Companies Consolidation (Consequential Provisions) Act 1985 (c. 9), section 25.

[^f00014]: Section 47B was inserted by the Companies Consolidation (Consequential Provisions) Act 1985 (c. 9), section 25.

[^f00015]: Section 49A was inserted by the Friendly Societies Act 1992 (c. 40), section 120(1) and Schedule 21, Part I, para 5(2); section 49B was inserted by S.I. 1993/174, reg 3(3) and renumbered by S.I. 1993/1327, reg 3(1).

[^f00016]: Section 52A was inserted by S.I. 1990/1333, reg 9(2) and amended by S.I. 1993/174, reg 3(4) and S.I. 1993/3127, reg 3(9).

[^f00017]: Paragraph (bb) was inserted by S.I. 1990/1333, reg 8(3) and amended by S.I. 1993/174, reg 2(1)(c).

[^f00018]: Paragraph (bb) was inserted by S.I. 1990/1333, reg 8(3) and amended by S.I.1993/174, reg 2(1)(c).

[^f00019]: Subsection (2A) of section 61 was inserted by S.I. 1992/2890, reg 4.

[^f00020]: Subsection (1) was amended by S.I. 1993/3127, reg 3(10).

[^f00021]: Section 63A was inserted by S.I. 1992/2890, reg 5.

[^f00022]: Subsection (3) was amended by the Fines and Penalties (Northern Ireland) Order 1984 (S.I. 1984/703 (N.I.3)), the Criminal Penalties etc. (Increase) Order (Northern Ireland) 1984 (S.R. 1984/253) and S.I. 1992/2890, reg 6.

[^f00023]: Subsection (4A) was inserted by the Companies Consolidation (Consequential Provisions) Act 1985 (c. 9), section 30 and Schedule 2.

[^f00024]: Subsection (7) was inserted by the Financial Services Act 1986 (c. 60), sections 135(2) and 136(2).

[^f00025]: Subsection (1) was amended by S.I. 1993/1327, reg 2(1).

[^f00026]: Section 81A was inserted by S.I. 1990/1333, reg 10 and amended by S.I. 1992/2890, reg 7, S.I. 1993/174, reg 4 and S.I. 1993/1327, reg 3(2).

[^f00027]: Sections 81B to 81J were inserted by S.I. 1990/1333, reg 10 and amended by S.I. 1992/2890, reg 7 and S.I. 1993/174, reg 4.

[^f00028]: Section 83A was inserted by S.I. 1992/2890, reg 8 and amended by S.I.1993/174, reg 2.

[^f00029]: Schedule 3A was inserted by S.I. 1990/1333, reg 6(2) and amended by S.I. 1993/174, reg 5(4) and (5).

[^f00030]: Section 96 has been amended by S.I. 1990/1333, reg 8(3) and S.I. 1993/174, reg 2(1)(c); and there are other amendments not relevant to these Regulations.

[^f00031]: O.J. L151, 7.6.78, page 25.

[^f00032]: O.J. L1, 3.1.94, page 3.

[^f00033]: O.J. L1, 3.1.94, page 572.

[^f00034]: 1985 c. 6: section 258 was inserted by the Companies Act 1989 (c. 40), section 21.

[^f00035]: S.I. 1986/1032 (N.I.6); Article 266 was inserted by the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I.5)), Article 23.

[^f00036]: Section 96A was inserted by S.I. 1990/1333, reg 2(1) and amended by S.I. 1992/2890, reg 9(4) and S.I. 1993/174, reg 6(3) to (5).

[^f00037]: O.J. L228, 11.8.92, page 1.

[^f00038]: O.J. L228, 16.8.73, page 3.

[^f00039]: O.J. L172, 4.7.88, page 1.

[^f00040]: O.J. L360, 9.12.92, page 1.

[^f00041]: O.J. L63, 13.3.79, page 1.

[^f00042]: O.J. L330, 29.11.90, page 50.

[^f00043]: Section 96B was inserted by S.I. 1990/1333, reg 4 and amended by S.I. 1992/2890, reg 9(5).

[^f00044]: S.I. 1986/1032 (N.I.6).

[^f00045]: Section 47A was inserted by the Companies Act 1989 (c. 40), section 192.

[^f00046]: Section 48 has been amended by the Companies Act 1989 (c. 40), section 206(1) and Schedule 23, Part I, para 2.

[^f00047]: Section 52 has been amended by the Companies Act 1989 (c. 40), section 206(1) and Schedule 23, Part 1, para. 5.

[^f00048]: Section 107 has been amended by the Companies Act 1989 (c. 40), section 206(1) and Schedule 23, Part I, para 10.

[^f00049]: Section 119 has been amended by the Companies Act 1989 (c. 40), section 206(1) and Schedule 23, Part I, para 14.

[^f00050]: Section 121 has been amended by the Companies Act 1989 (c. 40), section 206(1) and Schedule 23, Part I, para 15.

[^f00051]: Sub-paragraph (3A) was inserted by S.I. 1993/174, reg 7.

[^f00052]: S.I. 1992/1315.

[^f00053]: S.I. 1987/942.

[^f00054]: S.I. 1993/2706.

[^f00055]: 1985 c. 8.

[^f00056]: 1986 c. 45.

[^f00057]: 1986 c. 46.

[^f00058]: 1986 c. 60.

[^f00059]: 1989 c. 40.

[^f00060]: 1986 c. 53.

[^f00061]: 1973 c. 41.

[^f00062]: 1974 c. 39.

[^f00063]: 1976 c. 34.

[^f00064]: 1979 c. 38.

[^f00065]: 1980 c. 21.

[^f00066]: S.I. 1988/915.

[^f00067]: S.I. 1986/1032 (N.I.6).

[^f00068]: 1989 c. 40.

[^f00069]: 1982 c.xiv.

[^f00070]: 1958 c. 45.

[^f00071]: S.I. 1992/3218.

[^f00072]: 1987 c. 22.

[^f00073]: 1986 c. 46.

[^f00074]: Subsections (2) to (4) have been amended by the Companies Act 1989 (c. 40), section 77(2).

[^f00075]: Section 44A was inserted by the Companies Act 1989 (c. 40), section 77(3).

[^f00076]: Section 427A was inserted by S.I. 1987/1991, reg 2(a) and Schedule, Part I and amended by the Companies Act 1989 (c. 40), section 114(2).

[^f00077]: S.I. 1986/1032 (N.I.6); Article 420A was inserted by S.R. 1987/422, reg 3 and Schedule, Part I.

[^f00078]: Schedule 15B was inserted by S.I. 1987/1991, reg 2(c) and Schedule, Part II and amended and renumbered by the Companies Act 1989 (c. 40), sections 23 and 114(2) and Schedule 10, Part I, para 22.

[^f00079]: Schedule 15B was inserted by S.R. 1987/442, reg 3(c) and renumbered by the Companies (No.2) (Northern Ireland) Order 1990 (N.I.10), Article 49(2).

[^f00080]: 1992 c. 40.

[^f00081]: 1946 c. 64.

[^f00082]: 1946 c. 17 (N.I.).

[^f00083]: 1986 c. 60.

[^f00084]: O.J. L8, 11.1.84, page 17.

[^f00085]: Section 11A was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 6.

[^f00086]: Schedule 2A was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 5 and Schedule 2.

[^f00087]: Section 127A was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 6.

[^f00088]: Schedule 2A was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 5 and Schedule 2.

[^f00089]: Section 9A was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 6.

[^f00090]: Schedule 3 was inserted by the Judicial Pensions (Northern Ireland) Order 1991 (S.I. 1991/2630 (N.I.24)), Article 5 and Schedule 2.

[^f00091]: Section 23 was substituted by the Courts and Legal Services Act 1990 (c. 41), section 54.

[^f00092]: Section 3(2) has been amended by the Insurance Companies Act 1980 (c. 25), section 4 and Schedules 3 and 5, the Insurance Companies Act 1981 (c. 31), section 36 and Schedule 4 and the Insurance Companies Act 1982 (c. 50), section 99(2) and Schedule 5.

[^f00093]: Section 33A was inserted by the Courts and Legal Services Act 1990 (c. 41), section 82(1).

[^f00094]: Schedule 1A was inserted by the Courts and Legal Services Act 1990 (c. 41), section 81 and Schedule 23.

[^f00095]: Section 246 was inserted by the Companies Act 1989 (c. 40), section 13(1).

[^f00096]: Section 248 was inserted by the Companies Act 1989 (c. 40), section 13(3).

[^f00097]: Section 450(1) was amended by the Companies Act 1989 (c. 40), section 66.

[^f00098]: Paragraph (cc) of section 449(1) was inserted by the Companies Act 1989 (c. 40), section 65.

[^f00099]: Section 451A was inserted by the Financial Services Act 1986 (c. 60), section 182 and Schedule 13, para 10 and amended by the Companies Act 1989 (c. 40), section 68.

[^f00100]: Section 452 was amended by the Companies Act 1989 (c. 40), section 69.

[^f00101]: Article 254 was substituted by the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I.5)), Article 15(1).

[^f00102]: Article 256 was substituted by the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I.5)), Article 15(3).

[^f00103]: Article 443 was amended by the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I.10)), Article 14.

[^f00104]: Article 442 was amended by the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I.10)), Article 13.

[^f00105]: Article 444A was substituted by the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I.10)), Article 16.

[^f00106]: Article 445 was amended by the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I.10)), Article 17.

[^f00107]: Subsection (1) was amended by S.I. 1987/1292, Article 2 and S.I. 1992/3218, reg 39(1).

[^f00108]: Schedule 7A was inserted by S.I. 1989/802 (S.80), reg 43 and Schedule 1.