Written question asked by Tony Worthington (Labour) on Tuesday, 13 March 2001, in the House of Commons. It was due for an answer on Tuesday, 20 March 2001. It was answered by Melanie Johnson (Labour) on Tuesday, 20 March 2001 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what action was taken to enforce the provisions of the Insurance Companies Act 1982 concerning margins of solvency following the restructuring of Iron Trades Holdings Limited and the liquidation of Chester Street Holdings; for what reason the Government's powers of intervention under the Insurance Companies Act 1982 were not used in the case of the restructuring of Iron Trades Holdings prior to the liquidation of Chester Street Holdings.

Answer: Mr. Worthington: To ask the Chancellor of the Exchequer (1) what action was taken to enforce the provisions of the Insurance Companies Act 1982 concerning margins of solvency following the restructuring of Iron Trades Holdings Ltd. and the liquidation of Chester Street Holdings; [154169] (2) for what reason the Government's powers of intervention under the Insurance Companies Act 1982 were not used in the case of the restructuring of Iron Trades Holdings prior to the liquidation of Chester Street Holdings. [154170] Miss Melanie Johnson: Since 1 January 1999, the Financial Services Authority has been the prudential supervisor of insurance companies, operating under contract to the Treasury. In carrying out functions under the Insurance Companies Act 1982 the FSA keeps under review the appropriate use of the intervention powers available to it under that Act.

Secondary information

Type: Written question
Reference: 365 c172W; 154169;154170
Session: 2000-01
Subjects: Insurance companies Insolvency Regulation Chester Street Insurance Holdings Iron Trades Insurance Group
Legislation: Insurance Companies Act 1982
Link: View this Written question on www.publications.parliament.uk