Financial Services and Markets Act 2000, Part I — Insurance Business Transfer Schemes (1–6) — Full Text

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For the purposes of section 111(2) the appropriate certificate, in relation to an insurance business transfer scheme, is a certificate under paragraph 2.

(1) A certificate under this paragraph is to be given— (a) by the relevant authority; or (b) in a case in which there is no relevant authority, by the appropriate regulator . (2) A certificate given under sub-paragraph (1)(a) is one certifying that, taking the proposed transfer into account— (a) the transferee possesses, or will possess before the scheme takes effect, the necessary margin of solvency; or (b) there is no necessary margin of solvency applicable to the transferee. (3) A certificate under sub-paragraph (1)(b) is one certifying that the appropriate regulator has received from the authority which it considers to be the authority responsible for supervising persons who effect or carry out contracts of insurance in the place to which the business is to be transferred certification that, taking the proposed transfer into account— (a) the transferee possesses or will possess before the scheme takes effect the margin of solvency required under the law applicable in that place; or (b) there is no such margin of solvency applicable to the transferee . (4) “ Necessary margin of solvency ” means the margin of solvency required in relation to the transferee, taking the proposed transfer into account, under the law which it is the responsibility of the relevant authority to apply. (5) “ Margin of solvency ” means the excess of the value of the assets of the transferee over the amount of its liabilities. (6) “ Relevant authority ” means— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) if the transferee is a Swiss general insurer, the authority responsible in Switzerland for supervising persons who effect or carry out contracts of insurance; (c) if the transferee is an authorised person not falling within paragraph ... (b) — (i) the PRA, if the transferee is a PRA-authorised person with a Part 4A permission ...; (ii) the FCA, if the transferee is a person with a Part 4A permission ... but is not a PRA-authorised person. (7) In sub-paragraph (6), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed scheme takes effect. (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) “ Swiss general insurer ” means a body— (a) whose head office is in Switzerland; (b) which has permission to carry on regulated activities consisting of the effecting and carrying out of contracts of general insurance; and (c) whose permission is not restricted to the effecting or carrying out of contracts of reinsurance. (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial Services and Markets Act 2000 Part I — Insurance Business Transfer Schemes

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