Paragraph 12

United Kingdom

(1)

The powers conferred on the F1Treasury by section 40A above shall be exercisable in relation to an EC company if the supervisory authority in the company’s home State has, in accordance with Article 20(5) of the first general insurance Directive or Article 24(5) of the first long term insurance Directive, requested the Treasury to prohibit the free disposal of assets of that company and has confirmed—

(a)

that the company has failed to comply with the requirements of Article 15 of the first general insurance Directive or Article 17 of the first long term insurance Directive;

(b)

that the solvency margin of the company has fallen below the minimum required by Article 16(3) of the first general insurance Directive or Article 19 of the first long term insurance Directive; or

(c)

that the solvency margin of the company has fallen below the guarantee fund as defined in Article 17 of the first general insurance Directive or Article 20 of the first long term insurance Directive.

(2)

Those powers shall also be so exercisable if the TreasuryF2are notified by that authority that the company’s authorisation has been withdrawn, or has lapsed, in accordance with Article 22 of the first general insurance Directive or Article 26 of the first long term insurance Directive.