Regulations may make provision for securing that, in such circumstances and to such extent as may be prescribed, the assets of an insurance company to which this Part of this Act applies are maintained in such places as may be prescribed and the nature of the assets is appropriate in relation to the currency in which the liabilities of the company are or may be required to be met.

Regulations made for the purposes specified in subsection (1) above shall not have effect in relation to the assets of F2an insurance company whose head office is in an EFTA StateF3or which is a Swiss general insurance companyso far as their value exceeds the amount of the liabilities of the business carried on by the company in the United Kingdom, that value and amount being determined in accordance with any applicable valuation regulations.