The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Amendment) Order 2003

• Citation: S.I. 2003/2134
• Sections: 9

Section 1 Citation and commencement

This Order may be cited as the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Amendment) Order 2003 and comes into force on the day on which section 248 of the Enterprise Act 2002 comes into force.

Section 2 Amendment of the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002

Articles 3 to 7 amend the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002 .

Section 3 Article 1

In article 1(2), for the definition of “section 23 meeting” substitute—

“initial creditors' meeting” has the meaning given by paragraph 51(1) of Schedule B1;

“Schedule B1” means Schedule B1 to the 1986 Act .

Section 4 Article 3

In article 3, for “section 8(5)(a) of that Act” substitute “paragraph 9(2) of Schedule B1”.

Section 5 Article 4

In article 4, for “Rule 2.9(1)” substitute “Rule 2.12(1)” .

Section 6 Article 5

For article 5, substitute—

(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) an administration application had been made under paragraph 12 of Schedule B1 in relation to the insurer;

(b) in the case of an appointment of an administrator under paragraph 14 of Schedule B1, a notice of appointment had been filed with the court under paragraph 18 of that Schedule in relation to the insurer; or

(c) in the case of an appointment of an administrator under paragraph 22 of Schedule B1, a notice of intention to appoint had been filed with the court under paragraph 27 of that Schedule in relation to the insurer.

Section 7 Schedule

In the Schedule—

(a) paragraph 6 is renumbered as paragraph 8;

(b) for paragraphs 1 to 5, substitute—

(1) In paragraph 49(4) of Schedule B1 (administrator’s proposals), at the end of paragraph (c) add—

and

(d) to the Financial Services Authority

(2) In paragraph 53(2) of Schedule B1 (business and result of initial creditors' meeting), at the end of paragraph (c), add—

and

(d) the Financial Services Authority

(3) In paragraph 54(2)(b) of Schedule B1 (revision of administrator’s proposals), after “creditor” insert “and to the Financial Services Authority”.

(4) In paragraph 76(1) of Schedule B1 (automatic end of administration), for “one year” substitute “30 months”.

(5) In paragraph 76(2)(b) of Schedule B1 (extension of administrator’s term of office by consent) for “six” substitute “twelve”.

(6) In paragraph 79(1) of Schedule B1 (court ending administration on application of administrator), after the first reference to “company” insert “or the Financial Services Authority”.

(7) In paragraph 91(1) of Schedule B1 (supplying vacancy in office of administrator), at the end of paragraph (e) add—

or

(f) the Financial Services Authority

(c) in paragraph 8(3) (as numbered by paragraph (a) above), for the references to “a section 23 meeting” and “the section 23 meeting” substitute, respectively, “an initial creditors' meeting” and “that meeting”.

Section 8 Saving

Nothing in articles 2 to 7 applies in relation to any case where a petition for an administration order has been presented to the court before the coming into force of this Order.

Section 9 Amendment of the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001

The first table (modifications to the Policyholders Protection Act) in Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001 is amended—

(a) by adding, after the fifth entry (section 13(3))—

(3A) This section continues to apply in the case of a company in provisional liquidation in the event that an administration order is made in relation to that company under Part II of the Insolvency Act 1986, and for the purposes of this Act—

(a) such a company shall continue to be regarded as a company in provisional liquidation; and

(b) a person appointed as an administrator of such a company shall be regarded as a provisional liquidator.

; and

(b) by substituting for the sixth entry (section 16(3))—

After subsection (10), add—

(10A) This section continues to apply in the case of a company in financial difficulties in the event that an administration order is made in relation to that company under Part II of the Insolvency Act 1986, and for the purposes of this Act—

(a) such a company shall continue to be regarded as a company in financial difficulties; and

(b) the case shall continue to be regarded as falling within subsection (1)(a), (1)(b) or (1)(c), as the case may be.