Explanatory note

This Order consolidates the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002 (S.I. 2002/1242) and its amending instruments, applying Part 2 of the Insolvency Act 1986 in relation to insurers, and makes further modifications to Schedule B1 to that Act.

Article 2 enables administration orders to be made in relation to insurers, applying Part 2 of the Insolvency Act 1986 to insurers with the modifications set out in the Schedule.

Article 3 makes minor modifications to the Insolvency Rules 1986, ensuring that the Financial Services Authority and the Financial Services Compensation Scheme have a right to be represented at the hearing of an administration application in relation to an insurer.

Article 4 makes the same modifications in relation to the Insolvency (Scotland) Rules 1986.

Article 5 revokes the orders which previously applied Part 2 of the Insolvency Act 1986 to insurers.

An Impact Assessment of the effect that this Order will have on the costs of business is available on HM Treasury’s website (hm-treasury.gov.uk) and is annexed to the Explanatory Memorandum which is available alongside this Order on the legislation.gov.uk website.