The Insurance Companies (Accounts and Statements) (Amendment) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 31 December 1997, make amendments to the Insurance Companies (Accounts and Statements) Regulations 1996 (“the 1996 Regulations”). They concern the scope of the audit required under section 21 and the extent of disclosures required under section 17 and 18 of the Insurance Companies Act 1982.

Regulation 1 provides for the citation, commencement and application of the Regulations.

Regulation 2 amends the provisions for the valuation of assets contained in Regulation 4 of the 1996 Regulations.

Regulation 3 provides for Form 14 to be completed in respect of the long term business liabilities and margins for each separate long term business fund or group of funds.

Regulation 4 amends paragraph 14 of Schedule 1 to the 1996 Regulations in respect of the companies to which this paragraph applies.

Regulation 5 amends Forms 9 and 13 contained in Schedule 1 to the 1996 Regulations and introduces a new Form 14.

Regulation 6 amends Schedule 2 to the 1996 Regulations to include disclosures of transfers approved by competent authorities of EEA States other than the United Kingdom.

Regulations 7 and 8 amend the provisions in respect of unexpired risk reserves in paragraph 19 and 20 of Schedule 2 to the 1996 Regulations.

Regulations 9 amends the definition of an “open year” in paragraph 24 of Schedule 2.

Regulation 10 amends Forms 24, 28, 29, 30 and 32 to 39 in Schedule 2 to the 1996 Regulations and introduces a new Form 20.

Regulation 11 amends paragraph 2 of Schedule 3 to the 1996 Regulations so as to specify the level of precision to which valuation units are to be disclosed.

Regulations 12 to 17 amend the provisions in Schedule 4 to the 1996 Regulations concerning the content of the abstract of valuation report to be prepared by the appointed actuary in respect of assets and liabilities, amend Forms 47, 48, and 51 to 56 inclusive and introduce a new Form 57.

Regulation 18 amends the disclosure requirements in respect of maximum net probable losses in paragraph 4 of Schedule 5 to the 1996 Regulations.

Regulation 19 makes a minor amendment to the content of directors' certificates.

Regulation 20 removes from the scope of the auditors' report certain parts of the paragraphs in the directors' certificate relating to money laundering and to representations made to policyholders.