Part II Regulation of Insurance Companies

Changes of director, controller or manager etc.

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

(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 F1Treasury 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 F1TreasuryF2 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 F1Treasury having served on him a written notice of objection.

F3(1A)

The F1Treasury may serve a notice of objection under subsection (1) above on the ground—

(a)

that it appears to F4the Treasurythat 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 F4the 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 F1Treasury shall serve on the person proposing to become a controller a preliminary notice stating—

(a)

that the F1TreasuryF5are 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 F1Treasuryand, if that person so requests, oral representations to an officer of F6the Treasury appointed for the purpose by the F1Treasury.

F7(2A)

The F1Treasurymay 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 F1Treasury shall not be obliged to disclose to any person any particulars of the ground on which F8they are considering the service on him of a notice of objection.

(4)

Where representations are made in accordance with this section the F1Treasury shall take them into consideration before serving the notice of objection.