Memorandum from the Treasury
FINANCIAL SERVICES AND MARKETS ACT 2000 (LAW APPLICABLE
TO CONTRACTS OF INSURANCE)
REGULATIONS 2001 (S.I. 2001/2635)
1. The Treasury submit this memorandum in response
to the request dated 23 October 2001 set out below
Explain the intended effect of the modification
to regulation 7 made by regulation 3(2)(c)(iii), given that the
words "the 1990 Act is deemed to apply" do not appear
in regulation 7. Should those words have read "the 1990 Act
is to be treated as applying"? If so, explain the sense of
the modification in relation to regulation 7(1), and in particular
the reference to "that part".
2. The Treasury fully accept that the drafting of
regulation 3(2)(c)(iii) and regulation 7(1) should, but do not,
match up. This is a drafting error. The Regulations are not yet
in force. The Treasury propose to amend the Regulations before
they come into force to correct this error.
3. The reference to "that part" of the
UK is to reflect the fact that the constituent parts of the UK
may have different general rules of private international law
applicable to contractual obligations. However, we accept that
it is not clear in regulation 7(1) which part of the UK is "that"
part for these purposes. In these circumstances we propose to
amend regulation 3(2)(c)(iii), so far as it modifies regulation
7(1), by substituting for the second set of words in inverted
commas "a court in any part of the United Kingdom must apply
the general rules of private international law of that part of
the United Kingdom concerning contractual obligations".
26 October 2001