satisfied, the FR Scheme administrator must pay to the Secretary of State an
amount of the reserves to be determined in accordance with the regulations.

(6) Regulations under subsection (5) may—

(a) define “reserves”;

(b) 5make provision about determining the amount of the reserves of the FR
Scheme.

(7) Before making regulations under subsection (5), the Secretary of State must
obtain the consent of the FR Scheme administrator, which is not to be
unreasonably withheld.

55 10Scheme administration

(1) The Secretary of State may by regulations make provision in connection with
the administration of the FR Scheme.

(2) Regulations under subsection (1) may require the FR Scheme administrator to
have regard to the following in discharging its functions—

(a) 15the need to ensure economy, efficiency and effectiveness in the
discharge of those functions,

(b) the need to act in the public interest,

(c) the need to ensure propriety and regularity in the operation of the FR
Scheme, and

(d) 20the need to manage, over the period of operation of the FR Scheme, the
transition to risk-reflective pricing of flood insurance for household
premises.

(3) Regulations under subsection (1) may require the FR Scheme administrator to
produce and publish, in accordance with the regulations, a plan for achieving
25the transition mentioned in subsection (2)(d).

(4) Regulations under subsection (1) may require the FR Scheme administrator to
provide the following information to relevant insurers who have issued
insurance policies that are reinsured under the FR Scheme, so that those
insurers may supply the information to holders of those policies—

(a) 30information about how to find out about the levels of flood risk to
which an area in which household premises are situated is subject and
how any flood risk may be managed;

(b) information about the FR Scheme, including information about the
effect of section 52(2)(b) (transition to risk-reflective pricing of flood
35insurance for household premises).

(5) Regulations under subsection (1) may—

(a) limit, to any extent, the power of the FR Scheme administrator to
borrow money or otherwise incur debt;

(b) make provision about the reserves of the FR Scheme, including
40limitations on draw downs and transfers;

(c) require the FR Scheme administrator to take steps to limit the overall
net losses that may be incurred by the FR Scheme in any year to an
amount specified in or determined in accordance with the regulations;

(d) provide for the form and contents of the FR Scheme’s accounts;

(e) 45provide for a copy of the audited FR Scheme’s accounts and a copy of
the auditor’s report on those accounts to be laid before Parliament;

(f) provide for the Comptroller and Auditor General to examine—

(i) the economy, efficiency and effectiveness with which the FR
Scheme administrator has used resources in discharging its
functions, or

(ii) the propriety and regularity in the operation of the FR Scheme,

5and for a report on any such examination to be laid before Parliament;

(g) provide that for the purposes of an examination under paragraph (f)—

(i) the Comptroller and Auditor General is to have a right of access
at all reasonable times to any of the documents relating to the
FR Scheme, and

(ii) 10a person who holds or has control of any of those documents is
to give the Comptroller and Auditor General any assistance,
information or explanation which the Comptroller and Auditor
General requires in relation to any of those documents.

(6) Regulations under subsection (1) may—

(a) 15require the FR Scheme administrator to designate an individual of a
description specified in the regulations as the responsible officer of the
FR Scheme;

(b) provide for the responsible officer to have such responsibilities in
respect of—

(i) 20the FR Scheme’s finances,

(ii) the FR Scheme’s accounts,

(iii) accountability to Parliament for the economy, efficiency and
effectiveness with which the FR Scheme uses resources in
discharging its functions;

(iv) 25accountability to Parliament for propriety and regularity in the
operation of the FR Scheme, and

(v) examinations and reports under subsection (5)(f),

as are specified in the regulations.

(7) Regulations under subsection (1) may make provision about the disclosure of
30information required for the purposes of the FR Scheme and may, in particular,
require relevant insurers to supply to the FR Scheme administrator such
information as it may request in relation to insurance policies issued by them.

(8) Regulations under subsection (1) may provide for the supply by the FR Scheme
administrator of information held by it in connection with the FR Scheme to—

(a) 35the Environment Agency,

(b) the Scottish Environment Protection Agency,

(c) the Natural Resources Body for Wales,

(d) the Department of Agriculture and Rural Development in Northern
Ireland, or

(e) 40such other body as may be specified in the regulations.

(9) Regulations under subsection (1) may provide for the supply by the FR Scheme
administrator of information held by it in connection with the FR Scheme to the
Secretary of State for purposes relating to government accounting.

(10) Subsections (2) to (9) are not exhaustive of what may be done under subsection
45(1).

(11) In this section—

• “flood insurance” has the meaning given in section 52;

Water BillPage 112

• “the FR Scheme’s accounts” means the accounts for a financial year of the
  FR Scheme prepared by the FR Scheme administrator in respect of the
  FR Scheme.

56 Replacement of the scheme or administrator

(1) 5Where regulations under section 52 replace the FR Scheme by revoking a
designation and making a new designation, the regulations may make such
provision as the Secretary of State thinks fit in connection with the replacement
of the old FR scheme with the new FR scheme.

(2) Where regulations under section 53 replace the FR Scheme administrator by
10revoking a designation and making a new designation, the regulations may
make provision for the transfer of property, rights and liabilities relating to the
FR Scheme from the old administrator to the new administrator.

57 Disclosure of HMRC council tax information

(1) The Commissioners for Her Majesty’s Revenue and Customs may disclose
15relevant HMRC council tax information to any person who requires that
information for either of the following descriptions of purposes—

(a) purposes connected with such scheme as may be established and
designated in accordance with section 52 (in any case arising before any
scheme is so designated);

(b) 20purposes connected with the FR Scheme (in any case arising after the
designation of a scheme in accordance with section 52).

(2) A person to whom information is disclosed under subsection (1)(a) or (b)—

(a) may use the information only for the purposes mentioned in subsection
(1)(a) or (b), as the case may be;

(b) 25may not further disclose the information except with the consent of the
Commissioners.

(3) In this section—

• “HMRC council tax information” means information which is held for
  council tax purposes by the Valuation Office of Her Majesty’s Revenue
  30and Customs;

• “relevant HMRC council tax information” means HMRC council tax
  information relating to premises which are household premises and
  consisting of any of the following—

  (a)

  the address (including the postcode) of the premises;

  (b)

  35the council tax valuation band in which the premises fall;

  (c)

  information about when the premises were constructed;

  (d)

  the National Land and Property Gazetteer unique property
  reference number for the premises;

  (e)

  the unique address reference number allocated to the premises
  40by the Valuation Office of Her Majesty’s Revenue and Customs.

(4) The Secretary of State may by regulations amend the definition of “relevant
HMRC council tax information” in subsection (3).

(5) If the Secretary of State by regulations under subsection (4) amends the
definition of “relevant HMRC council tax information” to add further
45descriptions of information, those regulations may include the provision
described in subsection (6).

(6) The regulations may provide that if a person discloses, in contravention of
subsection (2)(b), information which is relevant HMRC council tax information
by virtue of the regulations and which relates to a person whose identity—

(a) is specified in the disclosure, or

(b) 5can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
disclosure, in contravention of section 20(9) of that Act, of revenue and customs
information relating to a person whose identity is specified in the disclosure or
10can be deduced from it.

(7) The Secretary of State must consult the Commissioners for Her Majesty’s
Revenue and Customs before making regulations under subsection (4).

Flood insurance obligations

58 Flood insurance obligations

(1) 15The Secretary of State may by regulations require a relevant insurer to issue in
a prescribed period insurance policies that provide cover against a prescribed
description of risk for a prescribed number of registered premises.

(2) The regulations may prescribe different numbers of registered premises for
different descriptions of risk.

(3) 20The descriptions of risks that may be prescribed are those arising from a flood.

(4) The regulations may provide for a prescribed number relating to a relevant
insurer to be determined by reference to factors that include in particular—

(a) a target number (see section 59);

(b) the relevant insurer’s share of insurance business of a prescribed
25description.

(5) The regulations may—

(a) make provision about determining the size of a relevant insurer’s share
of insurance business of a prescribed description;

(b) provide for a relevant insurer to be exempt from the obligation
30described in subsection (1) in prescribed circumstances, whether
wholly or so far as regards a particular description of risk, including
circumstances relating to the amount of insurance business done by the
relevant insurer;

(c) make provision about the circumstances in which a relevant insurer
35ceases to be subject to the obligation described in subsection (1),
whether wholly or so far as regards a particular description of risk;

(d) make provision about the cases in which issuing an insurance policy is
not to count towards discharging an obligation imposed on a relevant
insurer by the regulations, including cases in which an insurance policy
40is not to count because of the content of its terms;

(e) make provision for allowing an insurance policy issued by another
insurer to count towards the discharge of an obligation to issue a
number of insurance policies imposed on a relevant insurer by the
regulations;

(f) 45make provision about determining the number of registered premises
for which a relevant insurer has issued insurance policies, including

provision for varying, by reference to the risk band applicable to the
particular registered premises, the extent to which insuring those
premises counts in determining that number.

(6) Provision under subsection (5)(a) may require an insurer, in determining the
5insurer’s share of insurance business of a prescribed description, to use
information about that insurance business held by—

(a) the Secretary of State,

(b) a person acting on behalf of the Secretary of State, or

(c) the FCA.

(7) 10Subsection (5)(e) is not to be taken as requiring a change in the person who is
the insurer in relation to an insurance policy.

(8) Regulations under this section may include provision in respect of cases where
an insurer has not provided such information as is required by regulations
under section 60 including—

(a) 15provision for determining whether the insurer is a relevant insurer,

(b) provision for determining whether an exemption applies, and

(c) provision for determining what share of insurance business of a
prescribed description the insurer is to be treated as having.

(9) Before making regulations under this section, the Secretary of State must
20consult such persons as the Secretary of State considers appropriate.

(10) In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

59 Target number

(1) The Secretary of State may, from time to time, by regulations prescribe a
25number to be a target number for the purposes of regulations under section 58.

(2) A target number is the number of registered premises to be covered against a
prescribed description of risk by insurance policies issued in a prescribed
period by those relevant insurers upon whom obligations are imposed by
regulations under section 58.

(3) 30The regulations may prescribe different target numbers for different
descriptions of risk.

(4) The regulations may in particular provide for a target number to be expressed
as a percentage of the number of registered premises.

(5) The regulations may, at any one time, prescribe target numbers for two or more
35consecutive prescribed periods.

(6) In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

60 Information

(1) The Secretary of State may by regulations make provision about—

(a) 40the provision of information, and

(b) the production of documents,

by insurers for the purposes of regulations under section 58.

(2) The regulations may in particular require an insurer to provide information of
a prescribed description or produce documents of a prescribed description for
the purpose of showing, in relation to a prescribed period—

(a) whether or not an insurer is a relevant insurer;

(b) 5whether or not an exemption applies (see section 58(5)(b)).

(3) The regulations may in particular require an insurer to provide information or
produce documents about—

(a) the insurance policies issued by it in a prescribed period that provide
cover against prescribed descriptions of risk;

(b) 10the value of the insurance policies so issued;

(c) insurance policies so issued that do not remain in force to the end of the
period of cover;

(d) the value of such insurance policies.

(4) The regulations may provide for information to be provided or documents to
15be produced to the Secretary of State or a person acting on behalf of the
Secretary of State.

(5) The regulations may make provision—

(a) about the time within which information must be provided or
documents produced;

(b) 20about the form in which information is to be provided;

(c) about the place where documents are to be produced;

(d) requiring information to be verified in a prescribed manner;

(e) requiring documents to be authenticated in a prescribed manner.

(6) The regulations may make provision about—

(a) 25the persons to whom, and the purposes for which, information
supplied by an insurer may be disclosed;

(b) the publication of information by the Secretary of State about the
amount of insurance business of a prescribed description done by
insurers, taken together.

(7) 30In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

61 Section 60: further provision

(1) The Secretary of State may by regulations make provision for and in
connection with enforcing compliance with obligations imposed by
35regulations under section 60.

(2) The regulations may in particular include—

(a) provision about the sanctions, including civil penalties, that may be
imposed by the Secretary of State or a person acting on behalf of the
Secretary of State for non-compliance with the obligations;

(b) 40provision about the procedure to be followed when imposing a
sanction;

(c) provision about the recovery of costs incurred in connection with
imposing a sanction up to the time of its imposition;

(d) provision enabling an appeal to the First-tier Tribunal against the
45imposition of a sanction or a requirement to pay costs.

(3) Provision under subsection (2)(a) may in particular include—

(a) provision for civil penalties of a fixed amount;

(b) provision for further amounts to be payable by way of civil penalty
where an insurer continues to fail to comply with the obligation in
5question;

(c) provision about how a civil penalty or an amount of costs may be
recovered.

(4) Provision under subsection (2)(d) may include provision as to the grounds on
which an appeal may be made.

62 10Register of premises subject to greater flood risk

(1) The Secretary of State may by regulations provide for the creation and
maintenance of a register of household premises in the United Kingdom that
are subject to greater flood risk for the purposes of regulations under section
58.

(2) 15The regulations may provide for the levels of flood risk to which premises are
subject to be divided into two or more bands (“risk bands”), and may prescribe
the upper and lower limits of each band.

(3) The regulations may provide for the register to specify the level of flood risk to
which particular household premises are subject by specifying the risk band
20applicable to the premises.

(4) The regulations may provide for premises of a description specified in the
regulations to be excluded from the register, and the premises excluded may
include in particular premises where construction is completed on or after a
date specified in the regulations.

(5) 25The regulations may—

(a) specify the information to be contained in the register;

(b) make provision about access to the information contained in the
register;

(c) provide for the publication of the register in whole or in part;

(d) 30provide for the disclosure of information contained in the register;

(e) provide for notification if premises are entered in, or omitted from, the
register.

(6) Regulations made under subsection (5)(d) may provide for—

(a) the persons to whom information or any description of information
35contained in the register may be disclosed,

(b) the imposition of conditions on persons to whom information
contained in the register is disclosed, including conditions limiting
further disclosure;

(c) penalties for non-compliance with conditions imposed under
40paragraph (b).

(7) The regulations may require applications for premises to be entered in the
register to be made by or on behalf of a person who has the qualifying interest
in the premises.

(8) The regulations may provide for premises to be omitted from the register at the
45request of a person who has the qualifying interest in the premises.

(9) Before making regulations under this section the Secretary of State must
consult—

(a) the Welsh Ministers;

(b) the Scottish Ministers;

(c) 5the Department of Agriculture and Rural Development in Northern
Ireland.

63 Functions of relevant bodies

(1) Regulations under section 62 may provide for a relevant body to carry out
functions in connection with—

(a) 10the creation and maintenance of the register;

(b) giving access to information contained in the register;

(c) publication of the register;

(d) disclosure of information contained in the register;

(e) notification when premises are entered in, or omitted from, the register.

(2) 15The following are relevant bodies for the purposes of this Part—

(a) the Environment Agency;

(b) the Scottish Environment Protection Agency, in relation to Scotland;

(c) the Natural Resources Body for Wales, in relation to Wales;

(d) the Department of Agriculture and Rural Development in Northern
20Ireland, in relation to Northern Ireland.

(3) The regulations may provide for the Environment Agency—

(a) to coordinate the carrying out of functions conferred or imposed under
subsection (1);

(b) to promote consistency in the carrying out of those functions.

(4) 25The regulations may—

(a) require the relevant bodies to cooperate with each other as regards the
functions conferred or imposed on any of them under subsection (1);

(b) require the relevant bodies (other than the Environment Agency) to
cooperate with the Environment Agency as regards the carrying out of
30functions conferred or imposed on the Environment Agency under
subsection (3).

(5) Regulations under section 62 may provide for the Commissioners for Her
Majesty’s Revenue and Customs, or a person authorised by them, to disclose
information held for council tax purposes by the Valuation Office to—

(a) 35the Environment Agency, or

(b) the Natural Resources Body for Wales,

for use in identifying premises to be excluded from the register by reference to
the date of completion of construction (see section 62(4)).

(6) The regulations may include provision restricting the use or further disclosure
40of information disclosed under subsection (5).

64 Reviews and appeals

(1) Regulations under section 62 may make provision for a person with the
qualifying interest in particular premises—

(a) to request a review of a decision by a relevant body that the premises
are not eligible to be entered in the register;

(b) to appeal against a decision by a relevant body that the premises are not
eligible to be entered in the register to—

(i) 5the sheriff, in relation to Scotland,

(ii) the Water Appeals Commission for Northern Ireland, in
relation to Northern Ireland, or

(iii) the First-tier Tribunal, in any other case.

(2) For “relevant body”, see section 63(2).

65 10Expenses of relevant bodies

(1) The Secretary of State may, with the consent of the Treasury, by regulations
provide for a levy to be payable to the Secretary of State by insurers of a
description specified in the regulations.

(2) The regulations may—

(a) 15specify the rate of the levy or the method by which it is to be calculated;

(b) make provision as to the times when, and the manner in which,
payments are to be made in respect of the levy.

(3) The regulations may in particular make provision for determining the amount
of the levy by reference to the qualifying expenses of the relevant bodies and
20the Secretary of State.

(4) The regulations may make provision for amounts payable by way of levy
under the regulations to be recoverable summarily (or in Scotland recoverable)
as a civil debt.

(5) Before making regulations under this section the Secretary of State must
25consult—

(a) the Welsh Ministers;

(b) the Scottish Ministers;

(c) the Department of Agriculture and Rural Development in Northern
Ireland.

(6) 30In this section “qualifying expenses” means—

(a) in relation to a relevant body, such proportion of the expenses of the
relevant body as the Secretary of State considers reasonable having
regard to the functions exercisable by that body under regulations
under section 62;

(b) 35in relation to the Secretary of State, the expenses of the Secretary of
State attributable to the exercise of functions conferred by or under this
section.

(7) For “relevant body”, see section 63(2).

66 Compliance reports

(1) 40The Secretary of State may by regulations make provision about reporting
compliance with obligations imposed by regulations under section 58.

(2) The regulations may require a relevant insurer to make a report—

(a) stating the extent to which it has complied with obligations imposed on
it by regulations under section 58 in relation to a prescribed period;

(b) providing prescribed details about the basis on which it considers that
it has complied with those obligations to that extent.

(3) 5The regulations may provide for reports to be given to the FCA.

(4) In this section “prescribed” means specified in or determined in accordance
with regulations under this section.

67 Functions of the FCA

(1) The Treasury may by regulations provide for the FCA to take action for
10monitoring and enforcing compliance with—

(a) such of the obligations imposed on relevant insurers by regulations
under section 58 or 66 as may be specified in the regulations;

(b) such description of those obligations as may be specified in the
regulations.

(2) 15The regulations may provide for the FCA to take action for enforcing
compliance with—

(a) such of the obligations imposed on insurers by regulations under
section 60 as may be specified in the regulations;

(b) such description of those obligations as may be specified in the
20regulations.

(3) Regulations under subsection (2) may only provide for the FCA to take action
as regards cases where—

(a) the failure to comply, if proved, would consist in or involve providing
information that is not true or producing a document that is not correct,
25or

(b) measures available under section 61 have been taken without securing
compliance.

(4) The regulations may apply, or make provision corresponding to, any of the
provisions of the Financial Services and Markets Act 2000 or the Financial
30Services Act 2012, with or without modification.

(5) The provisions of the Financial Services and Markets Act 2000 and the
Financial Services Act 2012 referred to in subsection (4) include in particular—

(a) provisions about gathering information and investigating, including
provisions as to powers of entry and search;

(b) 35provisions as to criminal offences and disciplinary measures;

(c) provisions for the grant of an injunction in relation to a contravention
or anticipated contravention;

(d) provisions giving the Treasury or the FCA powers to make subordinate
legislation;

(e) 40provisions for the FCA to charge fees;

(f) provisions restricting liability in damages in relation to the discharge of
functions of the FCA.

(6) The regulations may make provision enabling the FCA, to such extent as the
regulations may prescribe, to make arrangements for the performance of
45functions on its behalf.