PART IIAMENDMENTS OF 1982 ACT

CHAPTER IIREGULATION OF INSURANCE COMPANIES

Powers of intervention

Maintenance of assets in the United Kingdom21

1

For subsection (1) of section 39 of the 1982 Act (maintenance of assets in the United Kingdom) substitute—

1

The Secretary of State may require—

a

in the case of a UK company, that assets of the company of a value which at any time is equal to the whole or a specified proportion of the amount of its EC liabilities shall be maintained in the European Community; and

b

in the case of an insurance company which is not a UK company, that assets of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in the United Kingdom.

2

In subsection (2) of that section, for the words “as assets maintained in the United Kingdom” substitute—

a

in the case of a UK company, as assets maintained in the European Community; and

b

in the case of an insurance company which is not a UK company, as assets maintained in the United Kingdom

3

In subsection (3) of that section, for the words “domestic liabilities” substitute the words “EC or domestic liabilities”.

4

For subsection (5) of that section substitute—

5

In this section—

a

any reference to an EC liability is a reference to a liability of the business carried on by the company in the European Community; and

b

any reference to a domestic liability is a reference to a liability of the business carried on by the company in the United Kingdom.