Financial Services and Markets Act 2000

142 Insurance business: regulations supplementing Authority’s rules

(1) The Treasury may make regulations for the purpose of preventing a person who is not an authorised person but who—

(a) is a parent undertaking of an authorised person who has permission to effect or carry out contracts of insurance, and

(b) falls within a prescribed class,

from doing anything to lessen the effectiveness of asset identification rules.

(2) “Asset identification rules” means rules made by the Authority which require an authorised person who has permission to effect or carry out contracts of insurance to identify assets which belong to him and which are maintained in respect of a particular aspect of his business.

(3) The regulations may, in particular, include provision—

(a) prohibiting the payment of dividends;

(b) prohibiting the creation of charges;

(c) making charges created in contravention of the regulations void.

(4) The Treasury may by regulations provide that, in prescribed circumstances, charges created in contravention of asset identification rules are void.

(5) A person who contravenes regulations under subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(6) “Charges” includes mortgages (or in Scotland securities over property).