Companies (1986 Order) (Insurance Companies Accounts) Regulations (Northern Ireland) 1994

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Companies (1986 Order) (Insurance Companies Accounts) Regulations (Northern Ireland) 1994, and shall come into operation on 16th December 1994.

(2) In these Regulations “the 1986 Order” means the Companies (Northern Ireland) Order 1986.

Insurance companies

2.—(1) In paragraph (2) of Article 263 of the 1986 Order(1) (special provisions for banking and insurance companies), for the word “may” there shall be substituted the word “shall”.

(2) Paragraph (5) of that Article shall be omitted.

Insurance groups

3.—(1) In paragraph (2) of Article 263A of the 1986 Order(2) (special provisions for banking and insurance groups), for the word “may” there shall be substituted the word “shall”.

(2) For paragraphs (4) and (5) of that Article there shall be substituted the following paragraphs—

“(4) References in this Part to a banking group are to a group where the parent company is a banking company or where—

(a) the parent company’s principal subsidiary undertakings are wholly or mainly credit institutions, and

(b) the parent company does not itself carry on any material business apart from the acquisition, management and disposal of interests in subsidiary undertakings.

(5) References in this Part to an insurance group are to a group where the parent company is an insurance company or where—

a) the parent company’s principal subsidiary undertakings are wholly or mainly insurance companies, and

(b) the parent company does not itself carry on any material business apart from the acquisition, management and disposal of interests in subsidiary undertakings.

(5A) For the purposes of paragraphs (4) and (5)—

(a) a parent company’s principal subsidiary undertakings are the subsidiary undertakings of the company whose results or financial position would principally affect the figures shown in the group accounts, and

(b) the management of interests in subsidiary undertakings includes the provision of services to such undertakings.”.

(3) At the end of paragraph (6)(b) of that Article there shall be inserted the words, “and as a reference to paragraphs 73, 74, 79 and 80 of Part I of Schedule 9A, in the case of the group accounts of an insurance group”.

(4) Paragraph (7) of that Article shall be omitted.

Form and content of accounts

4.  For Schedule 9A to the 1986 Order(3) there shall be substituted Schedule 1 to these Regulations (form and content of accounts of insurance companies and groups).

Minor and consequential amendments

5.  The 1986 Order shall have effect subject to the amendments specified in Schedule 2 to these Regulations (being minor amendments and amendments consequential on the provisions of these Regulations).

Exempted companies

6.—(1) A company to which paragraph (2) applies may, with respect to any financial year prepare such annual accounts as it would have been required to prepare had the modifications to the 1986 Order effected by these Regulations not been made.

(2) This paragraph applies to—

(a) any company which is excluded from the scope of Council Directive 73/239/EEC(4) by Article 3 of that Directive, and

(b) any company referred to in Article 2(2) or (3) or 3 of Council Directive 79/267/EEC(5).

(3) The modifications effected by regulations 2 to 5 shall, where a company prepares accounts under paragraph (1), be treated (as regards that company) as not having been made.

Transitional provisions

7.—(1) A company (including any body corporate to which Part VIII of the 1986 Order is applied by any statutory provision) may, with respect to a financial year of the company commencing before 23rd December 1994, prepare such annual accounts as it would have been required to prepare had the modifications to the 1986 Order effected by these Regulations not been made.

(2) The modifications effected by regulations 2 to 5 shall, where a company prepares accounts under paragraph (1), be treated (as regards that company) as not having been made.

Sealed with the Official Seal of the Department of Economic Development on 2nd November 1994.

L.S.

A. L. Brown

Assistant Secretary