7(1)At the end of section 11(2)(a) of the M1Insurance Companies Act 1982 (withdrawal of authorisation in respect of new business where insurance company has failed to satisfy an obligation to which it is subject by virtue of that Act) there shall be inserted the words “or the Financial Services Act 1986 or, if it is a member of a recognised self-regulating organisation within the meaning of that Act, an obligation to which it is subject by virtue of the rules of that organisation".
(2)After subsection (2) of section 13 of that Act (final withdrawal of authorisation) there shall be inserted—
“(2A)The Secretary of State may direct that an insurance company shall cease to be authorised to carry on business which is insurance business by virtue of section 95(c)(ii) of this Act if it appears to him that the company has failed to satisfy an obligation to which it is subject by virtue of the Financial Services Act 1986 or, if it is a member of a recognised self-regulating organisation within the meaning of that Act, an obligation to which it is subject by virtue of the rules of that organisation.
(2B)Subsections (3), (5) and (6) of section 11 and subsections (1) and (5) to (8) of section 12 above shall apply to a direction under subsection (2A) above as they apply to a direction under section 11.”
[F1(3)The disciplinary action which may be taken by virtue of section 47A(3) of this Act (failure to comply with statement of principle) includes—
(a)the withdrawal of authorisation under section 11(2)(a) of the Insurance Companies Act 1982, and
(b)the giving of a direction under section 13(2A) of that Act;
and subsection (6) of section 47A (duty of the Secretary of State as to exercise of powers) has effect accordingly.]
Textual Amendments
Marginal Citations