GEN 6.1 Payment of financial penalties2
Application
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.
Purpose
Interpretation
In this chapter 'financial penalty' means a financial penalty that the appropriate regulator5 has imposed, or may impose, under the Act. It does not include a financial penalty imposed by any other body.
5Payment of a penalty imposed on an employee
2No firm, except a sole trader, may pay a financial penalty imposed by the appropriate regulator5 on a present or former employee, director or partner of the firm or of an affiliated company.
5Insurance against financial penalties
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
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.
GEN 6.1.4A R,2 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 regulator5 enforcement action or any costs they may be ordered to pay to the appropriate regulator5.
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