Section 34A General business: equalisation reserve.F1

United Kingdom

(1)

Every insurance company to which this section applies which carries on general business of a prescribed description shall maintain, in accordance with regulations made for the purposes of this section, a reserve (in this section referred to as an “equalisation reserve”) in respect of its general business of that description.

(2)

Subject to subsection (3) below, this section applies to any insurance company to which this Part of this Act applies—

(a)

whose head office is in the United Kingdom;

(b)

whose business in the United Kingdom is restricted to reinsurance; or

(c)

whose head office is not in a member State.

(3)

This section does not apply to an insurance company of a description prescribed for the purposes of this subsection.

(4)

Without prejudice to the generality of subsection (1) above, regulations made for the purposes of this section may make provision—

(a)

as to the circumstances in which, and times at which, amounts are to be placed to, or taken from, an equalisation reserve;

(b)

as to the determination of the amounts to be so placed or taken; and

(c)

as to such other matters incidental to the maintenance of an equalisation reserve as the F2Treasury consider expedient.

Annotations

Textual amendments

F1: S. 34A inserted (30.4.1996) by 1995 c. 29, s. 1(1); S.I. 1996/945, art. 2
F2: Words in s. 34A(4) substituted (5.1.1998) by S.I. 1997/2781, art, 8(1), Sch. Pt. I para. 21 (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F1: Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(b)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 Part II

Modifications

C1

Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65

Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)