Insurance against financial penalties

Part

GEN General Provisions sourcebook

Chapter

Insurance against financial penalties

Printed on: 14/05/2025

Rulebook at: 06/10/2009

GEN 6

Insurance against financial penalties

GEN 6.1

Insurance against financial penalties

01/12/2004

Application

GEN 6.1.1

This chapter applies to every firm, but only with respect to business that can be regulated under section 138 of the Act (General rule-making power).

01/01/2004

GEN 6.1.2

For the purposes of GEN 2.2.17 R (Activities covered by general rules), the chapter applies to regulated and unregulated activities carried on in the United Kingdom or overseas.

01/01/2004

Purpose

GEN 6.1.3

The purpose of this section is to ensure that financial penalties are paid by the person on whom they are imposed.

01/01/2004

Interpretation

GEN 6.1.4

In this chapter 'financial penalty' means a financial penalty that the FSA has imposed, or may impose, under the Act. It does not include a financial penalty imposed by any other body.

01/01/2004

Insurance against financial penalties

GEN 6.1.5

No firm may enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty

01/01/2004

GEN 6.1.6

The Society, managing agents and members' agents must not cause or permit any member, in the conduct of his insurance business at Lloyd's, to enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty.

01/01/2004

GEN 6.1.7

GEN 6.1.5 R and GEN 6.1.6 R do not prevent a firm or member from entering into, arranging, claiming on or making any payment under a contract of insurance which indemnifies any person against all or part of the costs of defending FSA enforcement action or any costs they may be ordered to pay to the FSA.

01/01/2004