Part II U.K. Regulation of Insurance Companies

Modifications etc. (not altering text)

C1 Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65

Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)

Changes of director, controller or manager etc. U.K.

61 Approval of person proposing to become controller of insurance company where section 60 does not apply. U.K.

(1) No person shall become a controller of an insurance company to which this Part of this Act applies otherwise than by virtue of an appointment in relation to which section 60 above has effect unless—

(a) he has served on the [F1 Treasury] a written notice stating that he intends to become a controller of that company and containing such particulars as may be prescribed; and

(b) either the [F1 Treasury][F2 have], before the expiration of the period of three months beginning with the date of service of that notice, notified him in writing that there is no objection to his becoming a controller of the company or that period has elapsed without the [F1 Treasury] having served on him a written notice of objection.

[F3 (1A) The [F1 Treasury] may serve a notice of objection under subsection (1) above on the ground—

(a) that it appears to [F4 the Treasury]that the person concerned is not a fit and proper person to become a controller of the company; or

(b) where the company is a UK or non-EC company, that it appears to [F4 the Treasury] that, if that person were to become such a controller, the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

F3 (2) Before serving such a notice the [F1 Treasury] shall serve on the person proposing to become a controller a preliminary notice stating—

(a) that the [F1 Treasury][F5 are] considering the service on that person of a notice of objection on that ground; and

(b) that that person may, within the period of one month from the date of service of the preliminary notice, make written representations to the [F1 Treasury]and, if that person so requests, oral representations to an officer of [F6 the Treasury] appointed for the purpose by the [F1 Treasury].]

[F7 (2A) The [F1 Treasury]may serve a notice of objection under subsection (1) above for the purpose of implementing any decision of the Council or Commission of the Communities under—

(a) Article 29b(4) of the first general insurance Directive; or

(b) Article 32b(4) of the first long term insurance Directive.]

(3) The [F1 Treasury] shall not be obliged to disclose to any person any particulars of the ground on which [F8 they are] considering the service on him of a notice of objection.

(4) Where representations are made in accordance with this section the [F1 Treasury] shall take them into consideration before serving the notice of objection.

Textual Amendments

F1 Words in s. 61 substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(a) (with art. 7)

F2 Words in s. 61(1)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(b) (with art. 7)

F3 S. 61(1A)(2) substituted for s. 61(2) (1.7.1994) by S.I. 1994/1696, reg. 33

F4 Words in s. 61(1A) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(c) (with art. 7)

F5 Words in s. 61(2)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(i) (with art. 7)

F6 Words in s. 61(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(ii) (with art. 7)

F7 S. 61(2A) inserted (19.11.1992) by S.I. 1992/2890, reg. 4

F8 Words in s. 61(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(e) (with art. 7)

Modifications etc. (not altering text)

C2 S. 61: power to contract out functions conferred (18.11.1998) by 1998/2842, arts. 2, 3, Sch. Pt. I para. 4

C3 S. 61(1)(a) modified (1.12.2001) by S.I. 2001/2637, art. 3(2)(c); S.I. 2001/3538, art. 2

Changes of director, controller or manager etc. U.K.

61 Approval of person proposing to become controller of insurance company where section 60 does not apply. U.K.

(1) No person shall become a controller of an insurance company to which this Part of this Act applies otherwise than by virtue of an appointment in relation to which section 60 above has effect unless—

(a) he has served on the [F1 Treasury] a written notice stating that he intends to become a controller of that company and containing such particulars as may be prescribed; and

(b) either the [F1 Treasury][F2 have], before the expiration of the period of three months beginning with the date of service of that notice, notified him in writing that there is no objection to his becoming a controller of the company or that period has elapsed without the [F1 Treasury] having served on him a written notice of objection.

[F3 (1A) The [F1 Treasury] may serve a notice of objection under subsection (1) above on the ground—

(a) that it appears to [F4 the Treasury]that the person concerned is not a fit and proper person to become a controller of the company; or

(b) where the company is a UK or non-EC company, that it appears to [F4 the Treasury] that, if that person were to become such a controller, the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

F3 (2) Before serving such a notice the [F1 Treasury] shall serve on the person proposing to become a controller a preliminary notice stating—

(a) that the [F1 Treasury][F5 are] considering the service on that person of a notice of objection on that ground; and

(b) that that person may, within the period of one month from the date of service of the preliminary notice, make written representations to the [F1 Treasury]and, if that person so requests, oral representations to an officer of [F6 the Treasury] appointed for the purpose by the [F1 Treasury].]

[F7 (2A) The [F1 Treasury]may serve a notice of objection under subsection (1) above for the purpose of implementing any decision of the Council or Commission of the Communities under—

(a) Article 29b(4) of the first general insurance Directive; or

(b) Article 32b(4) of the first long term insurance Directive.]

(3) The [F1 Treasury] shall not be obliged to disclose to any person any particulars of the ground on which [F8 they are] considering the service on him of a notice of objection.

(4) Where representations are made in accordance with this section the [F1 Treasury] shall take them into consideration before serving the notice of objection.

Textual Amendments

F1 Words in s. 61 substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(a) (with art. 7)

F2 Words in s. 61(1)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(b) (with art. 7)

F3 S. 61(1A)(2) substituted for s. 61(2) (1.7.1994) by S.I. 1994/1696, reg. 33

F4 Words in s. 61(1A) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(c) (with art. 7)

F5 Words in s. 61(2)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(i) (with art. 7)

F6 Words in s. 61(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(ii) (with art. 7)

F7 S. 61(2A) inserted (19.11.1992) by S.I. 1992/2890, reg. 4

F8 Words in s. 61(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(e) (with art. 7)

Modifications etc. (not altering text)

C2 S. 61: power to contract out functions conferred (18.11.1998) by 1998/2842, arts. 2, 3, Sch. Pt. I para. 4

C3 S. 61(1)(a) modified (1.12.2001) by S.I. 2001/2637, art. 3(2)(c); S.I. 2001/3538, art. 2

Changes of director, controller or manager etc. U.K.

61 Approval of person proposing to become controller of insurance company where section 60 does not apply. U.K.

(1) No person shall become a controller of an insurance company to which this Part of this Act applies otherwise than by virtue of an appointment in relation to which section 60 above has effect unless—

(a) he has served on the [F1 Treasury] a written notice stating that he intends to become a controller of that company and containing such particulars as may be prescribed; and

(b) either the [F1 Treasury][F2 have], before the expiration of the period of three months beginning with the date of service of that notice, notified him in writing that there is no objection to his becoming a controller of the company or that period has elapsed without the [F1 Treasury] having served on him a written notice of objection.

[F3 (1A) The [F1 Treasury] may serve a notice of objection under subsection (1) above on the ground—

(a) that it appears to [F4 the Treasury]that the person concerned is not a fit and proper person to become a controller of the company; or

(b) where the company is a UK or non-EC company, that it appears to [F4 the Treasury] that, if that person were to become such a controller, the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

F3 (2) Before serving such a notice the [F1 Treasury] shall serve on the person proposing to become a controller a preliminary notice stating—

(a) that the [F1 Treasury][F5 are] considering the service on that person of a notice of objection on that ground; and

(b) that that person may, within the period of one month from the date of service of the preliminary notice, make written representations to the [F1 Treasury]and, if that person so requests, oral representations to an officer of [F6 the Treasury] appointed for the purpose by the [F1 Treasury].]

[F7 (2A) The [F1 Treasury]may serve a notice of objection under subsection (1) above for the purpose of implementing any decision of the Council or Commission of the Communities under—

(a) Article 29b(4) of the first general insurance Directive; or

(b) Article 32b(4) of the first long term insurance Directive.]

(3) The [F1 Treasury] shall not be obliged to disclose to any person any particulars of the ground on which [F8 they are] considering the service on him of a notice of objection.

(4) Where representations are made in accordance with this section the [F1 Treasury] shall take them into consideration before serving the notice of objection.

Textual Amendments

F1 Words in s. 61 substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(a) (with art. 7)

F2 Words in s. 61(1)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(b) (with art. 7)

F3 S. 61(1A)(2) substituted for s. 61(2) (1.7.1994) by S.I. 1994/1696, reg. 33

F4 Words in s. 61(1A) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(c) (with art. 7)

F5 Words in s. 61(2)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(i) (with art. 7)

F6 Words in s. 61(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(d)(ii) (with art. 7)

F7 S. 61(2A) inserted (19.11.1992) by S.I. 1992/2890, reg. 4

F8 Words in s. 61(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 41(e) (with art. 7)

Modifications etc. (not altering text)

C2 S. 61: power to contract out functions conferred (18.11.1998) by 1998/2842, arts. 2, 3, Sch. Pt. I para. 4

C3 S. 61(1)(a) modified (1.12.2001) by S.I. 2001/2637, art. 3(2)(c); S.I. 2001/3538, art. 2