Schedule 12, Part 1 Write-down orders: main provisions (para. 1)

Section 58

1

(1) Part 24 of FSMA 2000 (insolvency) is amended as follows.

(2) In section 360 (application of Part 2 of 1986 Act or Part 3 of 1989 Order (administration) to insurers), at the end insert -

"(4) Subsection (5) applies where, by virtue of an order under this section, a person may be appointed as administrator of an insurer.

(5) While a write-down order under section 377A has effect in relation to an insurer, a person may not be appointed as administrator of the insurer without the consent of the PRA."

(3) Omit section 377 (reducing the value of contracts instead of winding up).

(4) Before section 378 (treatment of assets on winding up) insert -

"377A Write-down orders

(1) A "write-down order" is an order of the court directing that the value of one or more of an insurer's liabilities is reduced on such terms as may be specified in the order.

(2) The court may make a write-down order in relation to an insurer if it is satisfied that -

(a) the insurer is, or is likely to beco

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