Part XXIV Insolvency

Voluntary winding up

366 Insurers effecting or carrying out long-term contracts or insurance.

1

An insurer effecting or carrying out contracts of long-term insurance may not be wound up voluntarily without the consent of the F4PRA.

2

If notice of a general meeting of such an insurer is given, specifying the intention to propose a resolution for voluntary winding up of the insurer, a director of the insurer must notify the F5PRA as soon as practicable after he becomes aware of it.

3

A person who fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

F14

A winding up resolution may not be passed—

a

as a written resolution (in accordance with Chapter 2 of Part 13 of the Companies Act 2006), or

b

at a meeting called in accordance with section 307(4) to (6) or 337(2) of that Act (agreement of members to calling of meeting at short notice).

5

A copy of a winding-up resolution forwarded to the registrar of companies in accordance with F2section 30 of the Companies Act 2006 must be accompanied by a certificate issued by the F6PRA stating that it consents to the voluntary winding up of the insurer.

6

If subsection (5) is complied with, the voluntary winding up is to be treated as having commenced at the time the resolution was passed.

7

If subsection (5) is not complied with, the resolution has no effect.

8

“Winding-up resolution” means a resolution for voluntary winding up of an insurer effecting or carrying out contracts of long-term insurance.

F39

Before giving or refusing consent under subsection (1), the PRA must consult the FCA.

10

In the event that the activity of effecting or carrying out long-term contracts of insurance as principal is not to any extent a PRA-regulated activity—

a

references to the PRA in subsections (1), (2) and (5) are to be read as references to the FCA, and

b

subsection (9) does not apply.