Section 217ZA

The compensation scheme must include provision requiring the scheme manager to take specified measures for safeguarding policyholders affected by write-down orders. A person (“P”) is a policyholder affected by a write-down order if— P is a policyholder of an insurer in respect of whom a write-down order has effect, and 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. 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). The purpose is to enable payments to be made to affected policyholders in respect of the reduction in value of their entitlements (or contingent entitlements), as mentioned in subsection (2)(b). Financial assistance given under this section— must not be used for any purpose other than the purpose mentioned in subsection (4); is not to be taken into account, to any extent, in valuing the assets of the insurer for any purpose. Measures taken by the scheme manager by virtue of this section are in addition to any measures the scheme manager may take under powers provided by virtue of section 217(1). In this section and section 217ZB— “insurer” means a relevant person who has permission to carry out contracts of insurance; “write-down order” means an order under section 377A (as it has effect in accordance with section 377H).

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Source: legislation.gov.uk · retrieved 2026-09-04