The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers)(Northern Ireland) Order 2007

Publication Date:January 01, 2007

2007No. 846

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers)(Northern Ireland) Order 2007

14thMarch2007

15thMarch2007

6thApril2007

The Treasury, in exercise of the powers conferred by sections 360, 426 and 428(3) of the Financial Services and Markets Act 2000 1, with the consent of the Secretary of State, makes the following Order:

Citation, commencement and interpretation

1.-

(1) This Order may be cited as the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers)(Northern Ireland) Order 2007 and comes into force on 6th April 2007.

(2) In this Order-

"the 1989 Order" means the Insolvency (Northern Ireland) Order 1989 2;

"the 1991 Rules" means the Insolvency Rules (Northern Ireland) 1991 3;

"initial creditors' meeting" has the meaning given by paragraph 52(1) of Schedule B1 to the 1989 Order.

Modification of Part III of the 1989 Order in relation to insurers

2.Part III of the 1989 Order (administration), other than paragraph 15 of Schedule B1 (power of holder of a floating charge to appoint administrator) and paragraph 23 of Schedule B1 (power of company or directors to appoint administrator) applies in relation to insurers with the modifications specified in the Schedule to this Order, and accordingly paragraph 10(2) of Schedule B1 to the 1989 Order does not preclude the making of an administration order in relation to an insurer.

Modification of the Insolvency Rules (Northern Ireland) 1991 in relation to insurers

3.The 1991 Rules, so far as they give effect to Part III of the 1989 Order, have effect in relation to insurers with the modification that in Rule 2.012(1) of the 1991 Rules (the hearing), there is inserted after sub-paragraph (a) the following sub-paragraph-

(aa) the Financial Services Authority;.

Mutual credit and set-off

4.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 4.096 of the 1991 Rules (mutual credits and set-off) if, at the time they became due, an administration application had been made under paragraph 13 of Schedule B1 to the 1989 Order in relation to the insurer.

Revocation and saving

5.-

(1) The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers)(Northern Ireland) Order 2005 4 is revoked.

(2) Paragraph (1) and articles 2 to 4 (including the modifications set out in the Schedule) do not apply in relation to any case where a petition for an administration order has been presented to the High Court before the coming into force of this Order.

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

6.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 5 is amended as follows-

(a) in the entry relating to section 15 after "Insolvency Act 1986" insert "or under Part III of the Insolvency (Northern Ireland) Order 1989"; and(b) in the entry relating to section 16 after "Insolvency Act 1986" insert "or under Part III of the Insolvency (Northern Ireland) Order 1989".

I consent

Frank Roy

Alan Campbell

Two of the Lords Commissioners of Her Majesty's Treasury

14th March 2007

Peter Hain

One of Her Majesty's Principal Secretaries of State

Northern Ireland Office

14th March 2007

SCHEDULE

Article 2

MODIFICATIONS OF PART III OF THE 1989 ORDER IN RELATION TO INSURERS

1.In paragraph 50(4) of Schedule B1 to the 1989 Order (administrator's proposals)-

(a) at the end of paragraph (b) omit "and"; and(b) at the end of paragraph (c) add "and, (d) to the Financial Services Authority".

2.In paragraph 54(2) of Schedule B1 to the 1989 Order (business and result of initial creditors'...

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