This Order makes savings and transitional provision for applications under Schedule 2C to the Insurance Companies Act 1982 (“Schedule 2C”) for approval of a transfer of the whole or part of the long term business carried on by an insurance company or approval of the transfer of rights and obligations under contracts of general insurance (including transfers of business to or from members of Lloyd's). In relation to any application that has been made but not determined before 1st December 2001, the relevant provisions of Schedule 2C are saved, subject to the general modifications in article 2 and the specific modifications in articles 3 and 5.

Article 4 provides that an order sanctioning a transfer under Part I of Schedule 2C (transfers of long term business) is to be treated as an order under section 111(1) of the Financial Services and Markets Act 2000 (“the Act”) for the purposes of section 112 of the Act. This enables the court, either when it makes that order or by way of a subsequent order, to make provision in relation to the transfer and allocation of property and other supplementary matters that are necessary to secure that the transfer scheme is fully and effectively carried out.

Any order sanctioning, or approval given in relation to, a transfer under Schedule 2C is to be treated as an order under section 111(1) of the Act for the purposes of section 104 of the Act. This means that an insurance business transfer that is made in accordance with that order or approval will have effect without breaching the prohibition contained in section 104 of the Act.