The Transfer of Functions (Insurance) Order 1997

• Citation: S.I. 1997/2781
• Sections: 140

Section 1 Citation and commencement

(1) This Order may be cited as the Transfer of Functions (Insurance) Order 1997.

(2) This Order shall come into force on 5th January 1998.

Section 2 Transfer of functions to the Treasury

(1) Subject to the following provisions of this Order, the functions of the Secretary of State—

(a) under the Policyholders Protection Act 1975 ;

(b) under the Insurance Brokers (Registration) Act 1977 ;

(c) under the Insurance Companies Act 1982 ;

(d) under the Reinsurance (Acts of Terrorism) Act 1993 ;

(e) under paragraph 13(2) of Schedule 15 to the Friendly Societies Act 1992 (power to certify that a person possesses the margin of solvency required by Part II of the Insurance Companies Act 1982); and

(f) under, or by virtue of, the Policyholders Protection Act 1997 ,

are hereby transferred to the Treasury.

(2) The functions of the Secretary of State mentioned in paragraph 6, 7, 8(a), 10, 18, 19, 23 or 26 of Schedule 1 to the Transfer of Functions (Financial Services) Order 1992 (certain functions under the Financial Services Act 1986 retained by the Secretary of State) are hereby transferred to the Treasury.

(3) The functions mentioned in paragraph 1, 2, 4 or 6 of Schedule 2 to that Order (functions under the Financial Services Act 1986), which, by virtue of article 4 of that Order, are exercisable by the Secretary of State jointly with the Treasury, are hereby transferred to the Treasury.

(4) The functions exercisable by the Board of Trade and the Secretary of State concurrently under—

(a) sections 35 and 39 of the Lloyd’s Act 1871 ,

(b) the Restriction of Advertisement (War Risks Insurance) Act 1939 ,

(c) the Insurance Companies Act 1958 , and

(d) section 91 of the Companies Act 1967 ,

are hereby transferred to the Treasury.

Section 3 Functions retained by the Secretary of State

The functions of the Secretary of State under sections 47(4) and 65(2) of the Insurance Companies Act 1982 (Secretary of State’s powers to prescribe fees for inspecting certain documents deposited with or served on the registrar of companies) are not transferred to the Treasury.

Section 4 Functions to be exercisable by the Secretary of State and the Treasury concurrently

(1) The following functions of the Secretary of State under the Insurance Companies Act 1982 shall be exercisable concurrently with the Treasury—

(a) the functions under section 44 (power to obtain information and require production of documents), so far as those functions are exercisable by virtue of any of the following provisions of that Act—

(i) section 37 (other than subsection (2)(d) to (f) or subsection (5) of that section),

(ii) section 83A or 84(2), or

(iii) paragraph 13 or 14 of Schedule 2F ;

(b) the functions under section 44A (entry and search of premises);

(c) the functions under section 47(1) (power to rescind or vary requirements), so far as they are exercisable in relation to a requirement imposed by the Secretary of State under section 44;

(d) the functions under section 54(1) to (4) (winding up on petition of Secretary of State);

(e) the functions under section 56(6) (continuation of long term business of insurance companies in liquidation);

(f) the functions under section 93 (restriction on institution of prosecutions);

(g) the functions under section 94 (restriction on summary proceedings);

(h) the functions under Schedule 2B (restriction on disclosure of information).

(2) The functions of the Secretary of State under section 438(1) of the Companies Act 1985 and article 431(1) of the Companies (Northern Ireland) Order 1986 shall, so far as they are exercisable by virtue of section 48(1) or (2) of the Insurance Companies Act 1982 , be exercisable concurrently with the Treasury.

(3) The functions of the Secretary of State under paragraph 28 of Schedule 7 to the Finance Act 1994 (power to disclose information to Commissioners of Customs and Excise in connection with performance of their duties in relation to tax) shall be exercisable concurrently with the Treasury.

Section 5 Transfers of property, etc.

(1) Subject to paragraph (2), all property, rights and liabilities to which the Secretary of State for Trade and Industry is entitled or subject at the coming into force of this Order in connection with any function transferred by article 2 of this Order are hereby transferred to the Treasury.

(2) Paragraph (1) does not have effect in relation to rights and liabilities under contracts of employment.

Section 6 Designation for purposes of European Communities Act 1972

For the purposes of section 2(2) of the European Communities Act 1972 , the Treasury is hereby designated (in place of the Secretary of State) in relation to—

(a) compulsory insurance in respect of, and other means of providing for, civil liability in relation to motor vehicles and trailers;

(b) transfers of insurance contracts other than contracts of life insurance from one insurance undertaking to another;

(c) authorisation of the carrying on of insurance business and the regulation of such business and its conduct;

(d) matters relating to the specification of insurers who may effect insurance required under or by virtue of any enactment; and

(e) matters relating to the transfer of contracts of life assurance from one insurance undertaking to another;

and to anything supplemental or incidental to those matters.

Section 7 Supplementary

(1) This Order shall not affect the validity of anything done (or having effect as if done) by or in relation to the Secretary of State, the Secretary of State for Trade and Industry or the Board of Trade before the coming into force of this Order.

(2) Anything which—

(a) has been, or has effect as if, done by or in relation to the Secretary of State, the Secretary of State for Trade and Industry or the Board of Trade for the purpose of or in connection with anything transferred by this Order, and

(b) is in force at the coming into force of this Order,

shall, so far as necessary for continuing its effect after the coming into force of this Order, have effect as if done by or in relation to the Treasury.

(3) Anything (including any legal proceedings) which, at the coming into force of this Order, is in the process of being done by or in relation to the Secretary of State, the Secretary of State for Trade and Industry or the Board of Trade may, so far as it relates to anything transferred by this Order, be continued by or in relation to the Treasury.

Section 8 Consequential amendments etc.

(1) The enactments mentioned in the Schedule to this Order shall have effect with the amendments specified in that Schedule.

(2) Subject to the amendments made by the Schedule to this Order, any enactment or instrument passed or made before the coming into force of this Order shall be construed—

(a) so far as may be necessary for the purpose of or in consequence of article 2(1), (2) or (4) or 5 of this Order as if—

(i) any reference to the Secretary of State, to the Secretary of State for Trade and Industry or to the Department of Trade and Industry (including any reference which is to be construed as such a reference) were a reference to the Treasury, and

(ii) any reference to an officer of the Secretary of State for Trade and Industry (including any reference which is to be construed as such a reference) were a reference to an officer of the Treasury;

(b) so far as necessary for the purpose of or in consequence of article 2(3) or 5, as if—

(i) any reference to the Treasury acting jointly with the Secretary of State, the Secretary of State for Trade and Industry or her department (including any reference which is to be construed as such a reference) were a reference to the Treasury, and

(ii) any reference to an officer of the Treasury acting jointly with an officer of the Secretary of State for Trade and Industry (including any reference which is to be construed as such a reference) were a reference to an officer of the Treasury; and

(c) so far as necessary for the purpose of or in consequence of article 4, as if—

(i) any reference to the Secretary of State, to the Secretary of State for Trade and Industry or to her department (including any reference which is to be construed as such a reference) were a reference to the Secretary of State or the Treasury, to the Secretary of State for Trade and Industry or the Treasury or, as the case may be, to her department or the Treasury, and

(ii) any reference to an officer of the Secretary of State for Trade and Industry (including any reference which is to be construed as such a reference) were a reference to such an officer or an officer of the Treasury.

(3) The references in paragraph (2)(a) above to the Secretary of State or the Secretary of State for Trade and Industry shall, so far as that paragraph applies in relation to article 2(4) of this Order, be construed as including references to the Board of Trade.

(4) In paragraph (2) above “instrument”, without prejudice to the generality of that expression, includes in particular judgments, decrees, orders, rules, regulations, schemes, bye-laws, awards, contracts and other agreements, memoranda and articles of association, warrants, certificates and other documents.

Section 1

The Insurance Companies Act 1982 shall be amended as follows.

Section 2

In section 3(1) for “Secretary of State” there shall be substituted “Treasury”.

Section 3

In section 5—

(a) subject to sub-paragraph (d)(ii) below, for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)—

(i) in paragraph (a) and (b) for “him” there shall be substituted “them”, and

(ii) in paragraph (b) for “he is” there shall be substituted “the Treasury are”;

(c) in subsection (1A) for “him” there shall be substituted “the Treasury”;

(d) in subsection (1B)—

(i) for “him” there shall be substituted “the Treasury”, and

(ii) in paragraph (b) for “the Secretary of State of his functions” there shall be substituted “the Treasury or the Secretary of State of their functions”; and

(e) in subsection (2)—

(i) for “he refuses” there shall be substituted “the Treasury refuse”, and

(ii) for “he”, in the second place it occurs, there shall be substituted “they”.

Section 4

In sections 6 and 7 for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”.

Section 5

In section 8—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (3)(a) for “he is” there shall be substituted “they are”.

Section 6

In section 9—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (1) for “he is” there shall be substituted “the Treasury are”.

Section 7

In section 11—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (2)(b) for “he” there shall be substituted “the Treasury”;

(c) in subsection (3) for “his” there shall be substituted “their”;

(d) in subsection (5) for “he considers” there shall be substituted “the Treasury consider”; and

(e) in subsection (6) for “issues” there shall be substituted “issue”.

Section 8

In section 12—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)—

(i) in paragraph (a) for “he is”, in both places it occurs, there shall be substituted “they are”, and

(ii) in paragraph (b) for “Department of Trade” there shall be substituted “Treasury”;

(c) in subsection (2)—

(i) in paragraph (a) for “he is” there shall be substituted “they are”, and

(ii) in paragraph (b) for “Department of Trade” there shall be substituted “Treasury”;

(d) in subsection (5) for “is” there shall be substituted “are”; and

(e) in subsection (8) for “him” there shall be substituted “the Treasury”.

Section 9

In section 12A—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (3)—

(i) for “he” there shall be substituted “they”, and

(ii) in paragraph (b) for “Department of Trade and Industry” there shall be substituted “Treasury”;

(c) in subsection (4)—

(i) for “gives” there shall be substituted “give”, and

(ii) in paragraph (b) for “Department of Trade and Industry” there shall be substituted “Treasury”; and

(d) in subsection (7) for “issues” there shall be substituted “issue”.

Section 10

In section 13—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (2A) for “him” there shall be substituted “the Treasury”.

Section 11

In section 19(2) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”.

Section 12

In section 21A—

(a) in subsection (1)—

(i) after “faith” there shall be inserted “to the Treasury or”,

(ii) for “him” there shall be substituted “them”, and

(iii) after “functions of the” there shall be inserted “Treasury or, as the case may be,”;

(b) in subsection (2)—

(i) for “Secretary of State”, in the first, third and fourth places it occurs, there shall be substituted “Treasury”,

(ii) after “communicated to the” there shall be inserted “Treasury or”, and

(iii) after “matter to” there shall be inserted “the Treasury or, as the case may be,”;

(c) in subsection (3) after “communicated to” there shall be inserted “the Treasury or”; and

(d) in subsection (5) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”.

Section 13

In section 22—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1) for “he thinks” there shall be substituted “they think”; and

(c) in subsection (5) for “him” and for “he” there shall be substituted “the Treasury”.

Section 14

In sections 23 and 24(1) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”.

Section 15

In section 25—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (5) for “he thinks” there shall be substituted “they think”.

Section 16

In section 26—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (3)—

(i) for “him” there shall be substituted “them”, and

(ii) for “he thinks” there shall be substituted “they think”.

Section 17

In section 29(3) for “Secretary of State” there shall be substituted “Treasury”.

Section 18

In section 30(3)—

(a) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”; and

(b) in paragraph (b) for “he” there shall be substituted “the Treasury”.

Section 19

In section 32(4)—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in paragraph (a) for “him” there shall be substituted “them”; and

(c) in paragraph (b) for “considers” there shall be substituted “consider”.

Section 20

In section 33—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1) for “him” there shall be substituted “them”; and

(c) in subsection (2)—

(i) for “considers” there shall be substituted “consider”, and

(ii) for “him” there shall be substituted “the Treasury”.

Section 21

In section 34A(4) for “Secretary of State considers” there shall be substituted “Treasury consider”.

Section 22

In section 37—

(a) for “Secretary of State”, in each place in occurs, there shall be substituted “Treasury”;

(b) in subsection (2)—

(i) in paragraph (a) for “considers” there shall be substituted “consider”,

(ii) in paragraph (aa), paragraph (b) and paragraph (c) for “him”, in each place it occurs, there shall be substituted “the Treasury”,

(iii) in paragraph (d) for “he is” and “he considers” there shall be substituted “the Treasury are” and “the Treasury consider” respectively,

(iv) in paragraph (e) for “he” there shall be substituted “the Treasury”, and

(v) in paragraph (f) for “him” there shall be substituted “the Treasury”;

(c) in subsection (3)(a) for “has” there shall be substituted “have”;

(d) in subsection (4) for “he considers” there shall be substituted “the Treasury consider”;

(e) in subsection (4A) for “him to perform his” there shall be substituted “the Treasury to perform their”;

(f) in subsection (5)(a) for “has” there shall be substituted “have”;

(g) in subsection (6) for “he considers” there shall be substituted “they consider”;

(h) in subsection (7)—

(i) for “he is”, in each place it occurs, there shall be substituted “they are”, and

(ii) for “has” there shall be substituted “have”; and

(j) after subsection (8) there shall be added—

(9) This section shall apply in relation to the powers conferred on the Secretary of State by section 44 below as it applies in relation to the powers conferred by that section on the Treasury, except that—

(a) in subsection (2)—

(i) the references in paragraphs (a), (aa) and (b) to the Treasury shall be construed as references to the Secretary of State,

(ii) in paragraph (c), the first reference to the Treasury shall be construed as a reference to the Secretary of State, and

(iii) paragraphs (d) to (f) shall not apply;

(b) in subsections (4) and (4A), the references to the Treasury shall be construed as references to the Secretary of State;

(c) subsection (5) shall not apply; and

(d) in subsection (7) the references to the Treasury shall be construed as references to the Secretary of State; and the words from “but this” to the end shall not apply.

Section 23

In sections 38 and 39 for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”.

Section 24

In section 40—

(a) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”; and

(b) in subsection (1) for “him” there shall be substituted “the Treasury”.

Section 25

In section 40A—

(a) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”; and

(b) in subsection (2) for “his” there shall be substituted “their”.

Section 26

In section 41 for “Secretary of State” there shall be substituted “Treasury”.

Section 27

In section 42—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”; and

(b) in subsection (4) for “he” there shall be substituted “they”.

Section 28

In section 43—

(a) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”; and

(b) for “him”, in each place it occurs, there shall be substituted “them”.

Section 29

In section 43A(1) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”.

Section 30

In section 44—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)—

(i) for “him” there shall be substituted “them”, and

(ii) for “he so requires” there shall be substituted “the Treasury so require”;

(c) in subsection (2)(a) for “he”, in both places it occurs, there shall be substituted “the Treasury”;

(d) in subsection (2B)—

(i) for “him” there shall be substituted “them”, and

(ii) for “has” there shall be substituted “have”;

(e) in subsection (3)—

(i) for “or a person authorised by him” there shall be substituted “have or a person authorised by them”, and

(ii) for “him”, in the second place it occurs, there shall be substituted “them or, as the case may be, him”; and

(f) after subsection (6) there shall be added—

(7) This section shall apply to the Secretary of State and persons authorised by him as it applies to the Treasury and persons authorised by them; and for this purpose references in this section to the Treasury shall be construed as references to the Secretary of State.

Section 31

In section 44A—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (2)(b) for “has” there shall be substituted “have”; and

(c) after subsection (8) there shall be added—

(9) The powers conferred by this section shall be exercisable in relation to information on oath given by or on behalf of the Secretary of State as they are exercisable in relation to information on oath given by or on behalf of the Treasury; and for this purpose the reference in subsection (2)(b) to the Treasury shall be construed as a reference to the Secretary of State.

Section 32

In section 45—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1) for “him” there shall be substituted “the Treasury”; and

(c) in subsection (2)(a) for “has” there shall be substituted “have”.

Section 33

In section 46—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)—

(i) for “he”, in the first place it occurs, there shall be substituted “they”,

(ii) in paragraph (a) for “is”, in the first place it occurs, there shall be substituted “are”,

(iii) in paragraph (a) for “he is” there shall be substituted “they are”, and

(iv) in paragraph (b) for “Department of Trade” there shall be substituted “Treasury”;

(c) in subsection (2)—

(i) for “decides” there shall be substituted “decide”,

(ii) for “he”, in the first place it occurs, there shall be substituted “they”, and

(iii) in paragraph (b) for “he proposes” there shall be substituted “they propose”; and

(d) in subsection (3) for “is” there shall be substituted “are”.

Section 34

In section 47—

(a) in subsections (1) and (3) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”;

(b) in subsection (1) for “him” there shall be substituted “them”; and

(c) after subsection (1) there shall be inserted—

(1A) The Secretary of State may rescind a requirement imposed by him under section 44 above if it appears to him that it is no longer necessary for the requirement to continue in force, and may from time to time vary any such requirement.

Section 35

In section 48, after subsection (2) there shall be inserted—

(2A) The Treasury may exercise the powers conferred on the Secretary of State by virtue of subsections (1) and (2) above; and sections 451A(2) and 452(1) of the Companies Act 1985 shall apply in relation to the Treasury as they apply in relation to the Secretary of State.

Section 36

In section 52A(1)—

(a) for “Secretary of State”, in both places it occurs, there shall be substituted “Treasury”; and

(b) for “he is” there shall be substituted “they are”.

Section 37

In section 52B(2) for “Secretary of State” there shall be substituted “Treasury”.

Section 38

In section 54—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)(c) for “is” there shall be substituted “are”;

(c) in subsection (2)(c) for “is” there shall be substituted “are”;

(d) in subsection (4) for “he” there shall be substituted “the Treasury”;

(e) after subsection (4) there shall be inserted—

(4A) The Secretary of State may exercise the powers conferred on the Treasury by subsections (1) to (4) above, and for this purpose those subsections shall be construed as if references to the Treasury were references to the Secretary of State.

(f) in subsection (5) for “him and he” there shall be substituted “the Treasury and they”.

Section 39

In section 56(6)—

(a) after “above” there shall be inserted “, the Treasury”; and

(b) after “special manager”, in the second place it occurs, there shall be inserted “, the Treasury”.

Section 40

In section 60—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)(b) for “has”, in the first place it occurs, there shall be substituted “have”;

(c) in subsection (3) for “him”, in each place it occurs, there shall be substituted “the Treasury”;

(d) in subsection (3A)—

(i) in paragraph (a) for “is” there shall be substituted “are”, and

(ii) in paragraph (b) for “the Department of Trade and Industry” there shall be substituted “the Treasury”; and

(e) in subsection (4) for “he is” there shall be substituted “they are”.

Section 41

In section 61—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)(b) for “has”, in the first place it occurs, there shall be substituted “have”;

(c) in subsection (1A) for “him”, in each place it occurs, there shall be substituted “the Treasury”;

(d) in subsection (2)—

(i) in paragraph (a) for “is” there shall be substituted “are”, and

(ii) in paragraph (b) for “the Department of Trade and Industry” there shall be substituted “the Treasury”; and

(e) in subsection (3) for “he is” there shall be substituted “they are”.

Section 42

In section 61A—

(a) for “Secretary of State”, in each place it occurs, there shall be substituted “Treasury”;

(b) in subsection (1)(b) for “has”, in the first place it occurs, there shall be substituted “have”; and

(c) in subsection (2) for “him”, in both places it occurs, there shall be substituted “them”.