Part II Regulation of Insurance Companies

Powers of intervention

38 Requirements about investments.

(1)

The Secretary of State may require a company—

(a)

not to make investments of a specified class or description;

(b)

to realise, before the expiration of a specified period (or such longer period as the Secretary of State may allow), the whole or a specified proportion of investments of a specified class or description held by the company when the requirement is imposed.

(2)

A requirement under this section may be framed so as to apply only to investments which are (or, if made, would be) assets representing a fund or funds maintained by the company in respect of its long term business or so as to apply only to other investments.

(3)

A requirement under this section shall not apply to the assets of a company so far as their value exceeds—

(a)

in the case of a company

F1(i)

whose head office is in an EFTA State, or

(ii)

which has in accordance with section 9(2) above made a deposit in an EEA State other than the United Kingdom, or

(iii)

which is a Swiss general insurance company,

the amount of the liabilities of the business carried on by the company in the United Kingdom;

(b)

in any other case, the amount of the liabilities of the company;

that value and amount being determined in accordance with any applicable valuation regulations.