Financial Services and Markets Bill - continued        House of Lords

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Authority's general duty.     307. - (1) The Authority must keep itself informed about-
    (a) the way in which the Council supervises and regulates the market at Lloyd's; and
    (b) the way in which regulated activities are being carried on in that market.
      (2) The Authority must keep under review the desirability of exercising-
    (a) any of its powers under this Part;
    (b) any powers which it has in relation to the Society as a result of section 308.
The Society
The Society: authorisation and permission.     308. - (1) The Society is an authorised person.
      (2) The Society-
    (a) has permission to carry on a regulated activity of any of the following kinds-
      (i) arranging deals in contracts of insurance written at Lloyd's ("the basic market activity");
      (ii) arranging deals in participation in Lloyd's syndicates ("the secondary market activity"); and
      (iii) an activity carried on in connection with, or for the purposes of, the basic or secondary market activity; and
    (b) must be issued by the Authority with a certificate of authorisation.
      (3) For the purposes of Part IV, the Society's permission is to be treated as if it had been given on an application for permission under that Part.
      (4) The power conferred on the Authority by section 43 may be exercised in anticipation of the coming into force of the Society's permission (or at any other time).
      (5) The Society is not subject to any requirement of this Act concerning the registered office of a body corporate.
Power to apply Act to Lloyd's underwriting
Direction by Authority.     309. - (1) The general prohibition or (if the general prohibition is not applied under this section) a core provision applies to the carrying on of an insurance market activity by-
    (a) a member of the Society, or
    (b) the members of the Society taken together,
  only if the Authority so directs.
      (2) A direction given under subsection (1) which applies a core provision is referred to in this Part as "an insurance market direction".
      (3) In subsection (1)-
    "core provision" means a provision of this Act mentioned in section 310; and
    "insurance market activity" means a regulated activity relating to contracts of insurance written at Lloyd's.
      (4) In deciding whether to give a direction under subsection (1), the Authority must have particular regard to-
    (a) the interests of policyholders and potential policyholders;
    (b) any failure by the Society to satisfy an obligation to which it is subject as a result of a provision of the law of another EEA State which-
      (i) gives effect to any of the insurance directives; and
      (ii) is applicable to an activity carried on in that State by a person to whom this section applies;
    (c) the need to ensure the effective exercise of the functions which the Authority has in relation to the Society as a result of section 308.
      (5) A direction under subsection (1) must be in writing.
      (6) A direction under subsection (1) applying the general prohibition may apply it in relation to different classes of person.
      (7) An insurance market direction-
    (a) must specify each core provision, class of person and kind of activity to which it applies;
    (b) may apply different provisions in relation to different classes of person and different kinds of activity.
      (8) A direction under subsection (1) has effect from the date specified in it, which may not be earlier than the date on which it is made.
      (9) A direction under subsection (1) must be published in the way appearing to the Authority to be best calculated to bring it to the attention of the public.
      (10) The Authority may charge a reasonable fee for providing a person with a copy of the direction.
      (11) The Authority must, without delay, give the Treasury a copy of any direction which it gives under this section.
The core provisions.     310. - (1) The core provisions are Parts V, X, XI, XII, XXII and XXVI.
      (2) References in an applied core provision to an authorised person are (where necessary) to be read as references to a person in the class to which the insurance market direction applies.
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