SCHEDULEMODIFICATIONS OF PART III OF THE 1989 ORDER IN RELATION TO INSURERS
1
In paragraph (3) of Article 26 (appointment of administrator),5 at the end of paragraph (c) add—
or
d
by the Financial Services Authority
2
In paragraph (1) of Article 30 (discharge or variation of administration order), after “company” insert “or the Financial Services Authority”.
3
In paragraph (1)(a) of Article 35 (statement of proposals), after “registrar” insert “, the Financial Services Authority”.
4
In paragraph (4) of Article 36 (consideration of proposals by creditors' meeting), after “registrar” insert “, the Financial Services Authority”.
5
In paragraph (2)(a) of Article 37 (approval of substantial revisions), after “addresses)” insert “and the Financial Services Authority”.
6
1
The powers of the administrator referred to in Schedule 1 to the 1989 Order (powers of administrator or administrative receiver) include the power to make—
a
any payments due to a creditor; or
b
any payments on account of any sum which may become due to a creditor.
2
Any payments to a creditor made pursuant to sub-paragraph (1) must not exceed, in aggregate, the amount which the administrator reasonably considers that the creditor would be entitled to receive on a distribution of the insurer’s assets in a winding up.
3
The powers conferred by sub-paragraph (1) may be exercised until an Article 35 meeting but may only be exercised thereafter—
a
if the following conditions are met—
i
the administrator has laid before the Article 35 meeting or any subsequent creditors' meeting (“the relevant meeting”) a statement containing the information mentioned in sub-paragraph (4); and
ii
the powers are exercised with the consent of a majority in number representing three-fourths in value of the creditors present and voting either in person or by proxy at the relevant meeting; or
b
with the consent of the High Court.
4
The information referred to in sub-paragraph (3)(a) is an estimate of the aggregate amount of—
a
the insurer’s assets and liabilities (whether actual, contingent or prospective); and
b
all payments which the administrator proposes to make to creditors pursuant to sub-paragraph (1),
including any assumptions which the administrator has made in calculating that estimate.