Powers of interventionU.K.
16(1)Where it appears to the [F2Treasury] that an EC company has failed to comply with any provision of law applicable to its insurance activities in the United Kingdom, [F3they] may require it to take such steps as [F3they] may specify to comply with that provision.
(2)If the company fails to comply with a requirement under sub-paragraph (1) above, the [F2Treasury] shall notify the supervisory authority in the home State.
(3)If, after the [F2Treasury][F4have] taken the action mentioned in sub-paragraphs (1) and (2) above, the company persists in contravening the provision in question, the [F2Treasury] may, after informing the supervisory authority of the home State, direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of any specified description, in the United Kingdom.
(4)The [F2Treasury] may exercise his powers under sub-paragraph (3) above without the conditions there mentioned being fulfilled if [F5they consider] that those powers should be exercised as a matter of urgency.
(5)After giving a direction under this paragraph, the [F2Treasury] shall by notice in writing inform the company of [F6their] reasons for doing so.
(6)A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.
(7)A requirement or direction under this paragraph may be varied or revoked by the [F2Treasury].
Textual Amendments
F2Word in Sch. 2F para. 16 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 72 (with art. 7)
F3Word in Sch. 2F para. 16(1) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(a) (with art. 7)
F4Word in Sch. 2F para. 16(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(b) (with art. 7)
F5Words in Sch. 2F para. 16(4) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(c) (with art. 7)
F6Word in Sch. 2F para. 16(5) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(d) (with art. 7)