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

S.I. 1990/2461 · Made 4 December 1990

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INSURANCE

Made 4th December 1990

Laid before Parliament 6th December 1990

Coming into force 27th December 1990

The Secretary of State, in exercise of the powers conferred by sections 27(1) and 28(1) of the Insurance Brokers (Registration) Act 1977f1 and of all other powers enabling him in that behalf, hereby makes the following Order:—

Annotations to the whole text

Footnotes

f1

1977 c. 46.

Contents

  1. 1Article 1
  2. 2Article 2
  3. Signature
  4. Schedule THE INSURANCE BROKERS REGISTRATION COUNCIL (INDEMNITY INSURANCE AND GRANTS SCHEME) (AMENDMENT) RULES 1990
  5. Part I: PRELIMINARY
  6. 1Paragraph 1
  7. 2Paragraph 2
  8. 3Paragraph 3
  9. Part II: PROFESSIONAL INDEMNITY INSURANCE
  10. 4Paragraph 4
  11. Part III: THE GRANTS SCHEME
  12. 5Paragraph 5
  13. 6Paragraph 6
  14. 7Paragraph 7
  15. 8Paragraph 8
  16. Explanatory note

1

This Order may be cited as the Insurance Brokers Registration Council (Indemnity, Insurance and Grants Scheme) (Amendment) Rules Approval Order 1990 and shall come into force on 27th December 1990.

2

The Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) (Amendment) Rules 1990 made on 10th April 1990 by the Insurance Brokers Registration Council under section 12 of the Insurance Brokers (Registration) Act 1977f1 and paragraph 6(1), (2) and (3) of Schedule 15 to the Financial Services Act 1986 are hereby approved as set out in the Schedule to this Order.

Signature

John Redwood

Minister of State,

Department of Trade and Industry

4thDecember 1990

THE INSURANCE BROKERS REGISTRATION COUNCIL (INDEMNITY INSURANCE AND GRANTS SCHEME) (AMENDMENT) RULES 1990

The Insurance Brokers Registration Council, in exercise of their powers under Section 12 of the Insurance Brokers (Registration) Act 1977, as amended by Section 138(3) of the Financial Services Act 1986, and paragraph 6(1), (2)and (3) of Schedule 15 to the said Act of 1986 hereby make the following Rules:—

1

These Rules may be cited as the Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) (Amendment) Rules 1990.

2

In these Rules, unless the context otherwise requires, “the Rules” means the Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) Rules 1987.

3

Rule 2(1) of the Rules shall be amended:—

(a)

By the addition at the end of the definition of “brokerage” of the words “and relevant investment business”;

(b)

By the addition at the end of the definition of “business” of the words “and shall include relevant investment business”; and

(c)

By the insertion at the end thereof of the following definitions:—

  • ““employee” other than for the purposes of rules 10, 11 and 12 of these Rules shall include an appointed representative for whom the practising insurance broker or enrolled body corporate has accepted responsibility for the purposes of Section 44 of the Financial Services Act 1986 and “former employee” shall be construed accordingly;

  • “relevant investment business” has the meaning assigned to it by rule 2 of the Conduct of Investment Business Rules;

  • “the Conduct of Investment Business Rules” means the Insurance Brokers Registration Council (Conduct of Investment Business) Rules 1988.”

4

Proviso (bb) to rule 3(2) of the Rules shall be amended by the addition after the word“ corporate” of the words “other than a director of a body corporate which is an appointed representative for whom the practising insurance broker or enrolled body corporate has accepted responsibility for the purposes of Section 44 of the Financial Services Act 1986”.

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.

Explanatory note

(This note is not part of the Order)

This Order approves Rules made by the Insurance Brokers Registration Council under section 12 of the Insurance Brokers (Registration) Act 1977 and paragraph 6(1), (2) and (3) of the Financial Services Act 1986. They amend the Rules approved by the Insurance Brokers Registration Council (Indemnity Insurance and Grants Scheme) Rules Approval Order 1987 (S.I. 1987/1496) by extending the scope of the professional indemnity insurance requirements and the Grants Scheme to all categories of investment business which practising registered brokers and enrolled bodies corporate are permitted to undertake.