Section 12A Suspension of authorisation in urgent cases.F1C1
United Kingdom
Where, in the case of a UK or non-EC company, it appears to the F2Treasury—
that one of the grounds in section 11(2) above exists in relation to the company: and
that the authorisation should be suspended as a matter of urgency,
the Treasury may direct that the company shall forthwith cease to be authorised to effect contracts of insurance, or contracts of any description specified in the direction.
A direction under this section—
shall not prevent a company from effecting a contract of insurance in pursuance of a term of a subsisting contract of insurance; and
unless confirmed by the Treasuryunder subsection (6) below, shall cease to have effect at the end of the relevant period.
Where the Treasury gives a direction under this section, F3they shall forthwith serve on the company a written notice stating—
the ground on which the direction is given; and
that the company may, within the period of one month from the date of service of the notice, make written representations to the Treasury and, if the company so requests, oral representations to an officer of the F4Treasury appointed for the purpose by the Treasury.
Where the TreasuryF5give a direction under this section on the ground set out in section 11(2)(ab) above, the Treasuryshall forthwith serve on any person whose fitness is in question a written notice stating—
the ground for giving the direction; and
that the person on whom the notice is served may, within the period of one month from the date of service of the notice, make written representations to the Treasury and, if that person so requests, oral representations to an officer of the Treasuryappointed for the purpose by the Treasury.
The Treasury shall consider any representations made in response to a notice under subsection (3) or (4) above before confirming a direction under this section.
At any time before the end of the relevant period, the Treasury may confirm a direction under this section by a written notice served on the company.
Where a direction under this section is so confirmed, it may not be revoked or varied; but if the Treasury subsequently F6issue to the company under section 3 above an authorisation to carry on insurance business of a class to which the direction relates, the direction shall cease to have effect in relation to such business.
In this section 'the relevant period’, in relation to a direction under this section, means the period of two months beginning with the date on which the direction is given.
Annotations
Textual amendments
- F1
S. 12A inserted (1.7.1994) by S.I. 1994/1696, reg. 11
- F2
Words in s. 12A substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 9(a) (with art. 7)
- F3
Word in s. 12A(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 9(b)(i) (with art. 7)
- F4
Words in s. 12A(3)(b)(4)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 9(b)(ii)(c)(ii) (with art. 7)
- F5
Words in s. 12A(4) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 9(c)(i) (with art. 7)
- F6
Word in s. 12A(7) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 9(d) (with art. 7)
Modifications
- C1
S. 12A: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 10
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)