The Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) (Amendment) Rules Approval Order 1990

PART III THE GRANTS SCHEME

5.  Rule 6 of the Rules shall be amended by the addition of the following further proviso:—

“PROVIDED THAT no grant or application for a grant shall be made under the Grants Scheme in respect of losses resulting from relevant investment business before 28th August 1988 in connection with units in a regulated scheme as defined by rule 2 of the Conduct of Investment Business Rules, including shares in or securities of an open-ended investment company, as defined by Section 75(8) of the Financial Services Act 1986, or any rights to and interests in anything falling within the same”.

6.  Rule 7(1) of the Rules shall be amended:—

(a) by the insertion of “(i)” before the words “are or have been insured”; and

(b) by the addition at the end thereof of the following words:—

“or (ii) have suffered loss in consequence of the negligence or fraud or other dishonesty on the part of practising insurance brokers or enrolled bodies corporate, or of employees of theirs, in connection with relevant investment business. ”

7.  Rule 8 of the Rules shall be amended by the insertion of “(1)” at the commencement of the rule and by the insertion of the following new paragraph:—

“(2) Notwithstanding the provisions of rules 6 and 7 of these rules the Council shall in their absolute discretion be entitled to make a grant or grants under the Grants Scheme to any person to relieve or mitigate losses suffered by such person in consequence of negligence or fraud or other dishonesty on the part of practising insurance brokers or enrolled bodies corporate, or of employees of theirs, in connection with their investment business as defined by Section 1(2) of the Financial Services Act 1986 or the failure on the part of practising insurance brokers or enrolled bodies corporate to account for monies received by them in connection with such business as the Council may decide in all the circumstances. ”

8.  Rule 14 of the Rules shall be amended by the deletion of the words “a notice in the form set out in the Appendix to these Rules” and the insertion in their place of the words “a notice in the form available from the Registrar on request” and consequently the Appendix to the Rules shall be omitted.