Part

GEN General Provisions sourcebook

Chapter

Insurance against financial penalties

Printed on: 06/11/2024

Rulebook at: 04/10/2013

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 sections 137A (The FCA's general rules) and 137G (The PRA's general rules) of the Act.
  • 01/04/2013

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.
  • 01/04/2013

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.
  • 01/04/2013

Interpretation

GEN 6.1.4

handbook-rule
In this chapter 'financial penalty' means a financial penalty that the appropriate regulator has imposed, or may impose, under the Act. It does not include a financial penalty imposed by any other body.
  • 01/04/2013

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 appropriate regulator on a present or former employee, director or partner of the firm or of an affiliated company.
  • 01/04/2013

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
  • 01/04/2013

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.
  • 01/04/2013

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 appropriate regulator enforcement action or any costs they may be ordered to pay to the appropriate regulator.
  • 01/04/2013