SCHEDULE 1
Regulation 2(1)
Amendments to the Act
1. Amendments to the Act
The Act is amended as set out in this Schedule.
2. Amendments to Part 7 of, and Schedule 12 to, the Act
(1) In section 105 (insurance business transfer schemes)—
(a)
(a) in subsection (2)(b) for the words from “qualifying for” to “contracts of insurance” substitute “falling within paragraph 5(d) of Schedule 3 and qualifying for authorisation under that Schedule”;
(b)
(b) in subsection (3) in Case 2 after paragraph (a) insert—
“(aa)
“(aa) the authorised person concerned is not a reinsurance undertaking (within the meaning of Article 2.1(c) of the reinsurance directive);”;
(c)
(c) in subsection (3) in Case 3 in paragraph (b) omit “(other than reinsurance)”;
(d)
(d) in subsection (3) in Case 4—
(i) for the words from “the business to be transferred” to the end of paragraph (a) (including the word “or” at the end of that paragraph) substitute—
“—
(a)
(a) the business to be transferred under the scheme is the whole of the business of the authorised person concerned;”;
(ii) for “, in either case, ” substitute “(c)”;
(e)
(e) in subsection (3) after Case 4 insert—
“CASE 5
Where—
(a)
(a) the business of the authorised person concerned consists solely of the effecting or carrying out of contracts of reinsurance;
(b)
(b) the business to be transferred is the whole or part of that business;
(c)
(c) the scheme does not fall within Case 4;
(d)
(d) all of the policyholders who will be affected by the transfer have consented to it; and
(e)
(e) a certificate has been obtained under paragraph 2 of Schedule 12 in relation to the proposed transfer.”;
(f)
(f) in subsection (4) for “3 or 4” substitute “3, 4 or 5”.
(2) In section 114 (rights of certain policyholders) in subsection (1)(c) after “contract of insurance” insert “(other than a contract of reinsurance)”.
(3) After section 114 insert—
“Notice of transfer of reinsurance contracts
114A.—(1) This section applies in relation to an insurance business transfer scheme if—
(a)
(a) the authorised person concerned is an authorised person other than an EEA firm qualifying for authorisation under Schedule 3;
(b)
(b) the court has made an order under section 111 in relation to the scheme; and
(c)
(c) an EEA State other than the United Kingdom is, as regards any policy included in the transfer which evidences a contract of reinsurance, the State in which the establishment of the policyholder to which the policy relates is situated at the date when the contract was entered into (“the EEA State concerned”).
(2) The court may direct that notice of the making of the order, or the execution of any instrument, giving effect to the transfer must be published by the transferee in the EEA State concerned.”.
(4) In section 116 (effect of insurance business transfers authorised in other EEA States)—
(a)
(a) in subsection (1) after “paragraph 5(d)” insert “or (da)”;
(b)
(b) for subsection (2) substitute—
“2 This section also applies if, as a result of an authorised transfer, any of the following transfers to another body all its rights and obligations under any UK policies—
(a) an undertaking authorised in an EEA State other than the United Kingdom under Article 51 of the life assurance consolidation directive;
(b) an undertaking authorised in an EEA State other than the United Kingdom under Article 23 of the first non-life insurance directive;
(c) an undertaking, whose head office is not within the EEA, authorised under the law of an EEA State other than the United Kingdom to carry out reinsurance activities in its territory (as mentioned in Article 49 of the reinsurance directive).”;
(c)
(c) in subsection (5)—
(i) at the end of paragraph (a)(i) omit “or”;
(ii) at the end of paragraph (a)(ii) for “and” substitute “or”;
(iii) after paragraph (a)(ii) insert “(iii) Article 18 of the reinsurance directive; and”;
(iv) at the end of paragraph (b)(i) omit “or”;
(v) at the end of paragraph (b)(ii) insert “or (iii) the provisions in the law of that EEA State which provide for the authorisation of transfers of all or part of a portfolio of contracts of an undertaking authorised to carry out reinsurance activities in its territory (as mentioned in Article 49 of the reinsurance directive).”;
(d)
(d) for subsection (6) substitute—
“6 “UK policy” means—
(a) in the case of an authorised transfer within the meaning of paragraph (a)(i) or (ii) or (b)(i) or (ii) of subsection (5), a policy evidencing a contract of insurance (other than a contract of reinsurance) to which the applicable law is the law of a part of the United Kingdom;
(b) in the case of an authorised transfer within the meaning of paragraph (a)(iii) or (b)(iii) of that subsection, a policy evidencing a contract of reinsurance to which the applicable law is the law of a part of the United Kingdom.”.
(5) In Schedule 12 (transfer schemes: certificates)—
(a)
(a) at the end of paragraph 1(1)(d) insert “; (e) if sub-paragraph (5) applies, the certificates under paragraph 5A.”;
(b)
(b) in paragraph 1(3)(a)8after “Article 4” insert “or Article 51”;
(c)
(c) in paragraph 1(4)(a) after “Article 6” insert “or Article 23”;
(d)
(d) after paragraph 1(4) insert—
“5 This sub-paragraph applies if—
(a) the authorised person concerned has received authorisation under Article 23 of the first non-life insurance directive or Article 51 of the life assurance consolidation directive from the Authority; and
(b) the proposed transfer is to a branch or agency, in an EEA State other than the United Kingdom, authorised under the same Article.”;
(e)
(e) in paragraph 2—
(i) in sub-paragraph (6)(a) after “paragraph 5(d)” insert “or (da)”;
(ii) after sub-paragraph (6)(a) insert—
“(aa)
“(aa) if the transferee is a non-EEA branch, the competent authorities of the EEA State in which the transferee is situated or, where appropriate, the competent authorities of an EEA State which supervises the state of solvency of the entire business of the transferee’s agencies and branches within the EEA in accordance with Article 26 of the first non-life insurance directive or Article 56 of the life assurance consolidation directive;”;
(iii) in sub-paragraph (6)(c) for “paragraph (a)” substitute “paragraph (a), (aa)”;
(iv) after sub-paragraph (7) insert—
“7A “Competent authorities” has the same meaning as in the insurance directives.”;
(v) after sub-paragraph (8) insert—
“9 “Non-EEA branch” means a branch or agency which has received authorisation under Article 23 of the first non-life insurance directive or Article 51 of the life assurance consolidation directive.”;
(f)
(f) after paragraph 5 insert—
“Certificates as to legality and as to consent
5A.—(1) The certificates under this paragraph are to be given—
(a)
(a) in the case of the certificate under sub-paragraph (2), by the Authority;
(b)
(b) in the case of the certificate under sub-paragraph (3), by the relevant authority.
(2) A certificate given under this sub-paragraph is one certifying that the relevant authority has been notified of the proposed scheme and that—
(a)
(a) the relevant authority has consented to the proposed scheme; or
(b)
(b) the period of three months beginning with the notification has elapsed and that relevant authority has not refused its consent.
(3) A certificate given under this sub-paragraph is one certifying that the law of the EEA State in which the transferee is set up permits such a transfer.
(4) “Relevant authority” means the competent authorities (within the meaning of the insurance directives) of the EEA State in which the transferee is set up.”;
(g)
(g) in paragraph 10(2) after “paragraph 5(d)” insert “or (da)”.
3. Amendments to section 198 of the Act
In section 198 (power to apply to court for injunction in respect of certain overseas insurance companies)—
(a) at the end of subsection (1)(a) omit “or”;
(b) at the end of subsection (1)(b)9insert—
“; or
(c)
(c) Article 42.4 of the reinsurance directive”.
4....
