(1) The Contracting Out (Functions in Relation to Insurance) Order 1998 [S.I. 1998/2842.] is revoked.

(2) Notwithstanding paragraph (1), any contract made between the Treasury and the Financial Services Authority that relates to the exercise of functions listed in the Schedule to that Order which is subsisting immediately before commencement, continues to have effect on and after commencement, to the extent that it relates to matters ancillary to the exercise of those functions including -

(a) payment; and

(b) retention and inspection of documents.

(2A) On 1st April 2013 the rights, obligations and liabilities of the Financial Services Authority under any such contract transfer to -

(a) the PRA, to the extent that the right, obligation or liability relates to a matter relevant to prudential regulation,

(b) in any other case, the FCA.

(2B) Any obligation of the FCA under such a contract which continues to have effect after 1st April 2013 is to be treated as a function conferred on the FCA by or under a provision of the Act for the purposes of Schedule 1ZA.