Memorandum by HM Treasury
1. The Committee requested a
memorandum on the following points.
(1) Paragraph 6(1) of the Scheme
provides that the Council shall cause elections to be held from
time to time for the election of six members
to fill vacancies arising in the membership of the Council. Explain
the intended effect of this provision, given that the Schedule
to the 1977 Act provides that the Council is to consist of 12
persons chosen to represent registered insurance brokers (paragraph
1), and that those persons (after the retirement of the initially
nominated members) are to be elected in accordance with the scheme
(2) In paragraph 28(c) of the
Scheme, ought not the reference to the Representation of the People
Act 1949 to have been a reference to the Representation of the
People Act 1983?
2. The Treasury respond as follows.
(1) The Insurance Brokers
(Registration) Act 1977 (Amendment) Order 1999 (SI 1999/3000),
having been approved by a resolution of each House of Parliament,
came into force on the 8th November 1999. Regulation
2 of that Order substituted for paragraph 1 of the Schedule to
the 1977 Act the following paragraph:-
Council shall consist of -
(a) six persons
chosen to represent registered insurance brokers of whom one shall
be Chairman of the Council;
(b) four persons
nominated by the Treasury of whom one shall be a barrister, advocate
or solicitor; and as regards two of the others, the Treasury,
in making the nominations shall give due consideration that it
would be desirable that one member of the Council should be a
member of a recognised body of accountants and one a person appearing
to the Treasury to represent the interests of persons who are
or may become policyholders of insurance companies."
Hence the reference in
paragraph 6(1) of the Scheme was to the election of six persons
to fill vacancies arising in the membership of the Council.
(2) HM Treasury accept
that a typographical error was made in paragraph 28(c) of the
Scheme and that the reference should be to the 1983 Act. This
error will be rectified as soon as possible.
24th November 1999