§ Mr. Baldry
To ask the Secretary of State for Trade and Industry whether he will now introduce regulations to require companies to report on their arrangements to meet the duty imposed by section 31A of the Insurance Companies Act 1982.
§ Mr. Redwood
I undertook on 26 July to consider introducing a new regulation requiring insurance companies to report on their arrangements to meet the duty imposed by section 31A of the Insurance Companies Act 1982. This section requires insurance companies to ensure that adequate arrangements are in force for securing that transactions affecting assets of the company (other than transactions outside its control) do not operate unfairly between different funds of the company. I have now made regulations, which come into effect on 1 March 1990, which have been laid before Parliament today. The regulations require a certificate to be signed by the directors, to be annexed to the annual report, which will state that for the past financial year the company has had in force arrangements to meet this duty.