Paragraph 6

United Kingdom

(1)

The insurance company shall not be regarded as conducting its business in a sound and prudent manner unless it maintains—

(a)

adequate accounting and other records of its business; and

(b)

adequate systems of control of its business and records.

(2)

Accounting and other records and systems of control shall not be regarded as adequate unless they are such as—

(a)

to enable the business of the company to be prudently managed; and

(b)

to enable the company to comply with the obligations imposed on it by or under this Act and, in the case of a UK company, enactments in other EEA States which apply to its insurance business.

(3)

In determining whether any systems of control are adequate the F1Treasury shall have regard to the functions and responsibilities for those systems which are held by the persons who are responsible for the direction and management of the company and to whom paragraph 2 above applies.