(This note is not part of the Order)
This Order in Council transfers a number of functions currently exercisable by the Secretary of State to the Treasury with effect from 5th January 1998, so as to make them exercisable by the Treasury alone or by the Secretary of State and the Treasury concurrently. It also makes a number of supplementary and consequential provisions.
The main functions transferred are functions under the Policyholders Protection Acts 1975 and 1997, the Insurance Brokers (Registration) Act 1977, the Insurance Companies Act 1982, the Financial Services Act 1986 and the Reinsurance (Acts of Terrorism) Act 1993. The statutory powers are transferred by virtue of article 2, which is subject to articles 3 and 4. Article 3 sets out the functions which are retained by the Secretary of State which relate to his powers to prescribe fees for inspecting certain documents deposited with or served on the registrar of companies. Article 4 sets out the functions which are exercisable by the Secretary of State and the Treasury concurrently. These functions are connected, essentially, with enforcement (including investigations and prosecutions) and the winding-up of insurance companies.
Article 5 transfers to the Treasury the property, rights and liabilities to which the Secretary of State is entitled or subject in connection with the functions transferred by article 2 of the Order.
Article 6 designates the Treasury as the appropriate authority to make regulations implementing certain EC Directives in the area of insurance in place of the Secretary of State.
Articles 7 and 8 (together with the Schedule) make supplementary and consequential provision enabling enactments and instruments to be interpreted correctly in consequence of the transfer effected by the Order.