4 Part 15 of FSMA 2000 (the Financial Services Compensation Scheme) is amended as follows.
5 After section 217 (insurers in financial difficulties) insert -
"217ZA Insurers subject to write-down orders
(1) The compensation scheme must include provision requiring the scheme manager to take specified measures for safeguarding policyholders affected by write-down orders.
(2) A person ("P") is a policyholder affected by a write-down order if -
(a) P is a policyholder of an insurer in respect of whom a write-down order has effect, and
(b) the value of any thing to which P is (or may become) entitled, in P's capacity as a policyholder of the insurer, is reduced under the write-down order.
(3) Measures specified by virtue of subsection (1) must, in particular, require financial assistance to be given to insurers subject to write-down orders for the purpose mentioned in subsection (4).
(4) The purpose is to enable payments to be made to affected policyholders in respect of the reduc
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