Made | 2nd May 2002 | ||
Laid before Parliament | 3rd May 2002 | ||
Coming into force | 31st May 2002 |
Meaning of insurer in section 360 of the Financial Services and Markets Act 2000
2.
In article 2 of the Financial Services and Markets Act 2000 (Insolvency) (Definition of "Insurer") Order 2001[3], omit the words "except section 360 (administration orders in relation to insurers),".
Modification of Part II of the 1986 Act in relation to insurers
3.
Part II of the 1986 Act (administration orders) applies in relation to insurers with the modifications specified in the Schedule to this Order, and accordingly section 8(5)(a)[4] of that Act does not preclude the making of an administration order in relation to an insurer.
Modification of the Insolvency Rules 1986 in relation to insurers
4.
The Insolvency Rules 1986[5], so far as they give effect to Part II of the 1986 Act, have effect in relation to insurers with the modification that in Rule 2.9(1) of those Rules (the hearing) there is inserted after sub-paragraph (a) the following sub-paragraph -
Mutual credit and set-off
5.
Where an insurer, in relation to which an administration order has been made, subsequently goes into liquidation, sums due from the insurer to another party are not to be included in the account of mutual dealings rendered under rule 4.90 of the Insolvency Rules 1986 (mutual credit and set-off) if, at the time they became due, a petition had been presented to the court under section 9 of the 1986 Act (application for an administration order) in relation to the insurer.
Anne McGuire
Nick Ainger
Two of the Lords Commissioners of Her Majesty's Treasury
2nd May 2002
I consent
Patricia Hewitt
Secretary of State Department of Trade and Industry
2nd May 2002
2.
In subsection (1) of section 18 (discharge or variation of administration order), after "company" insert "or the Financial Services Authority".
3.
In subsection (1)(a) of section 23 (statement of proposals), after "registrar of companies" insert ", the Financial Services Authority".
4.
In subsection (4) of section 24 (consideration of proposals by creditors' meeting), after "registrar of companies" insert ", the Financial Services Authority".
5.
In subsection (2)(a) of section 25 (approval of substantial revisions), after "addresses)" insert "and the Financial Services Authority".
6.
- (1) The powers of the administrator referred to in Schedule 1 to the 1986 Act (powers of administrator or administrative receiver) include the power to make -
(2) Any payments to a creditor made pursuant to sub-paragraph (1) must not exceed, in aggregate, the amount which the administrator reasonably considers that the creditor would be entitled to receive on a distribution of the insurer's assets in a winding up.
(3) The powers conferred by sub-paragraph (1) may be exercised until a section 23 meeting but may only be exercised thereafter -
(b) with the consent of the court.
(4) The information referred to in sub-paragraph (3)(a) is an estimate of the aggregate amount of -
including any assumptions which the administrator has made in calculating that estimate.
[4] Section 8(5) was added by the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), article 304.back
[5] S.I. 1986/1925. Rule 2.9 was amended by the Insolvency (Amendment) Rules 1987 (S.I. 1987/1919).back
[6] Sections 13, 23 and 25 were amended, in relation to companies which are authorised institutions or former authorised institutions under the Banking Act 1987, by the Banks (Administration Proceedings) Order 1989 (S.I. 1989/1276) as amended by S.I. 1998/1129, Sch. 1 and S.I. 2001/3649.back