Schedule 12: Write-down orders Part 3 – Further provision about write-down orders Part 1 of new Schedule 19B: Restrictions on enforcement
Paragraph 1 sets out when the restrictions on enforcement provided for by Paragraph 2 have effect. These restrictions apply initially (on an interim basis) from when an application for a write-down order is put to the court until a write-down order is made or the application is withdrawn or dismissed. Paragraph 1 provides that the restrictions subsequently apply (on a permanent basis) from the date a write-down order is made for a default period of 6 months (beginning with the day on which the order takes effect) and any such further period as the court may order (which cannot be more than six months per order). These restrictions cease to apply if the court orders so, or if the write-down order ceases to have effect in accordance with section 377H of FSMA 2000. The court may extend or terminate the restrictions only on an application by the persons set out in Paragraph 1(4).
	Paragraph 2 sets out the restrictions on enforcement which take effect for such periods as provided for under Paragraph 1. The restrictions prevent an insurer’s creditors from taking steps, without the permission of the court, to, for example, enforce security over the insurer’s property. Paragraph 2 empowers the court to impose conditions on any consent it gives for an act of enforcement to be taken which would otherwise be prohibited under the paragraph.
	Paragraph 3 sets out exceptions to the restrictions imposed by Paragraph 2. This Paragraph provides HM Treasury with a power to amend certain of the exceptions through statutory instrument under the draft affirmative procedure.