§ Mr. HoyleTo ask the Secretary of State for Trade and Industry what measures are in place to protect with-profit policy holders against a foreign predator acquiring and asset stripping a United Kingdom life insurance company.
§ Mr. RedwoodThe Insurance Companies Act 1982 (section 61) provides that no person may become the controller of an insurance company without first notifying the Secretary of State, who may object if he considers that the proposed controller is not a fit and proper person to be a controller of that company. "Fit and proper" is not defined in the Act, but in considering whether to exercise his power to prevent a change of control the Secretary of State has regard to any issue which may affect the interests of the company's policyholders.
Further provisions in the Act require that the long-term business fund must be kept separate from the company's other funds and place restrictions on the purposes for which these funds may be applied. The Act also gives the Secretary of State wide-ranging powers to intervene where this is necessary to protect policyholders' interests. Where appropriate the Secretary of State may require assets of the company to be maintained in the United Kingdom or to be.held in trust.