Paragraph 16

United Kingdom

(1)

Where it appears to the F1Treasury that an EC company has failed to comply with any provision of law applicable to its insurance activities in the United Kingdom, F2they may require it to take such steps as they may specify to comply with that provision.

(2)

If the company fails to comply with a requirement under sub-paragraph (1) above, the Treasury shall notify the supervisory authority in the home State.

(3)

If, after the TreasuryF3have taken the action mentioned in sub-paragraphs (1) and (2) above, the company persists in contravening the provision in question, the Treasury may, after informing the supervisory authority of the home State, direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of any specified description, in the United Kingdom.

(4)

The Treasury may exercise his powers under sub-paragraph (3) above without the conditions there mentioned being fulfilled if F4they consider that those powers should be exercised as a matter of urgency.

(5)

After giving a direction under this paragraph, the Treasury shall by notice in writing inform the company of F5their reasons for doing so.

(6)

A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.

(7)

A requirement or direction under this paragraph may be varied or revoked by the Treasury.

Annotations

Textual amendments

F1: Word in Sch. 2F para. 16 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 72 (with art. 7)
F2: Word in Sch. 2F para. 16(1) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(a) (with art. 7)
F3: Word in Sch. 2F para. 16(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(b) (with art. 7)
F4: Words in Sch. 2F para. 16(4) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(c) (with art. 7)
F5: Word in Sch. 2F para. 16(5) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 81(d) (with art. 7)

Notes on the whole Act

Textual amendments

F1: Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(b)

Notes on Schedule 2F]

Textual amendments

F1: Sch. 2F inserted (1.7.1994) by S.I. 1994/1696, reg. 45(2), Sch. 6

Modifications

C1: Sch. 2F: Power to contract out certain functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 60