Part

GEN General Provisions sourcebook

Chapter

Insurance against financial penalties

Printed on: 06/11/2024

Rulebook at: 01/11/2012

GEN 6

Insurance against financial penalties

GEN 6.1

Payment of financial penalties

  • 06/03/2011

Application

GEN 6.1.1

handbook-rule
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

handbook-guidance
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

handbook-guidance
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

handbook-rule
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

Payment of a penalty imposed on an employee

GEN 6.1.4A

handbook-rule
No firm, except a sole trader, may pay a financial penalty imposed by the FSA on a present or former employee, director or partner of the firm or of an affiliated company.
  • 06/03/2011

Insurance against financial penalties

GEN 6.1.5

handbook-rule
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

handbook-rule
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

handbook-guidance
GEN 6.1.4A R, 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.
  • 06/03/2011