|Previous Section||Back to Table of Contents||Lords Hansard Home Page|
The first topic is the power conferred on the authority to make directions under Clause 309. Such a direction would apply to members of Lloyd's those parts of the Bill--referred to as "the core provisions"--that otherwise apply only to authorised persons.
Amendment No. 259QA adds a new subsection to Clause 310 which makes it clear that in exercising its powers to apply a core provision of the Bill to a member of Lloyd's, the authority may modify the way in which the core provisions will apply. The Explanatory Notes gave an example of the practical issues that would arise if every member of a syndicate were required personally to obtain approval for retaining the services of a syndicate underwriter.
Another example might be in the case of the application of the ombudsman or compensation arrangements, where we should expect the FSA to want to specify how those arrangements would interact with Lloyd's internal mechanisms for dispute resolution between policyholders and Names, and compensation in the event of the insolvency of a Name. These are sensible bits of polishing to the provisions of the Bill which I hope will be welcomed.
Amendments Nos. 259SA to 259WA are part of the package of amendments that the Government are bringing forward to improve the FSA's decision-making procedures. Clause 314 gives the FSA powers to impose requirements on former underwriting members of Lloyd's. Former members continue to carry on insurance business until all their liabilities under the contracts that they have underwritten at Lloyd's are discharged. However, rather than requiring such persons to be authorised, which would be excessive, we have introduced these provisions which give the FSA the powers it needs to impose any requirements it considers necessary to protect policyholders.
These amendments make a small number of changes to Clause 314. The clause, which was added to the Bill at Committee stage in another place, already incorporates most of the new features which we are now introducing into other equivalent provisions elsewhere in the Bill. The amendments ensure that the procedures are consistent.
The third package within this group is also about the arrangements for giving the authority appropriate powers over former Names. The Government do not believe, as I said, that it is appropriate for former Names to have to be authorised, but it is none the less necessary for the authority to have adequate powers to protect its policyholders.
Clause 313 enables the authority to make directions that would impose specific requirements on former members. It is, if you like, a form of intervention power. However, it will be sometimes necessary for the authority to impose requirements in the form of rules--that is to say, requirements that apply across the board rather than on a case-by-case basis. Under the current arrangements introduced to apply the powers of the regulator under the Insurance Companies Act 1982, former Names are required to notify the authority of a change of permanent address. The new clause introduced by Amendment No.
Amendments Nos. 259RA and 259WAB are consequential on that amendment as they move the definition of "former underwriting member" from Clause 313 to the interpretation provision (Clause 315), since the definition is now needed for the purposes of Clause 313 and the new clause.
("( ) An insurance market direction may provide that a core provision is to have effect, in relation to persons to whom the provision is applied by the direction, with modifications.").
Page 163, line 39, leave out subsection (1).
The noble Lord said: I have just spoken to this amendment. I beg to move.
Page 164, line 24, at end insert--
("( ) The Authority may extend the period allowed under the notice for making representations.").
Page 164, line 33, at end insert--
("( ) If the Authority decides to grant an application by A for the variation or revocation of a requirement, it must give him written notice of its decision."). Page 164, line 36, at beginning insert ("If").
Page 164, line 37, leave out from first ("notice") to end of line 38 and insert ("decides to refuse the application, it must give A a decision notice.").
Page 164, line 42, at end insert--
("( ) If an application for a variation or revocation of the requirement is refused, the applicant may refer the matter to the Tribunal.
( ) If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.").
After Clause 314, insert the following new clause--
Page 165, line 4, after ("2;") insert--
(""former underwriting member" means a person ceasing to be an underwriting member of the Society on, or at any time after, 24 December 1996;").
Page 165, line 30, leave out ("and in other ways").
The noble and learned Lord said: I understand that I am now speaking to three amendments standing in my name. I shall happily be corrected, but I understand them to be Amendments Nos. 259XA, 259YA and 259ZA. I understand the Minister's desire to gallop towards a conclusion, and the idea of building up momentum is a technique that I readily accept I have previously deployed--
Back to Table of Contents
Lords Hansard Home Page