The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019

Modifications to the Act: Part 7 and Schedule 12

6.—(1) Part 7 of the Act (control of business transfers) is modified as follows.

(2) In section 105 (insurance business transfer schemes)—

(a) subsection (1)(b) is to be read as if after “EEA State” there were inserted “or in the United Kingdom”;

(b) subsection (2)(1) is to be read as if—

(i) in paragraph (a) for “member States” there were substituted “relevant States (and a “relevant State” is a member State or the United Kingdom)”;

(ii) in paragraph (b) for “an EEA firm falling within paragraph 5(d) of Schedule 3 and qualifying for authorisation under that Schedule” there were substituted “a qualifying relevant person”;

(iii) paragraph (c) for “an EEA firm” there were substituted “a relevant person”;

(c) after subsection (2), the section is to be read as if there were inserted—

“(2A) In subsection (2)(b) “qualifying relevant person” means a relevant person which is an undertaking pursuing the activity of direct insurance (within the meaning of Article 2 of the Solvency 2 Directive(2)) which has received authorisation under Article 14 of that directive from its home state regulator.

(2B) In subsection (2A) “home state regulator” means the competent authority of an EEA State in relation to the qualifying relevant person concerned; and “competent authority” is to be construed in accordance with the Solvency 2 Directive.”;

(d) subsection (3)(3) is to be read as if—

(i) Case 2 were omitted;

(ii) in Case 3—

(aa) in paragraph (b) for “(none of which is an EEA State)” there were substituted “outside the United Kingdom”;

(bb) in paragraph (b) for “an EEA State”, in the second place it occurs, there were substituted “the United Kingdom”;

(cc) in paragraph (c) for “other than an EEA State” there were substituted “outside the United Kingdom”.

(3) Section 112 (effect of order sanctioning business transfer scheme) subsection (9)(4) is to be read as if for “an EEA firm” there were substituted “a relevant person”.

(4) In section 114(5) (rights of certain policy holders)—

(a) subsection (1)(a) is to be read as if for “an EEA firm qualifying for authorisation under Schedule 3” there were substituted “a relevant person”;

(b) subsection (1)(c) is to be read as if “other than the United Kingdom” were omitted.

(5) In section 114A (notice of transfer of reinsurance contracts)(6)—

(a) subsection (1)(a) is to be read as if for “an EEA firm qualifying for authorisation under Schedule 3” there were substituted “a relevant person”;

(b) subsection (1)(c) is to be read as if “other than the United Kingdom” were omitted.

(1)

Subsection (2) was amended by S.I. 20073253 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013 (c.33).

(2)

OJ L 335, 17.12.2009, p. 1.

(3)

Subsection (3) was amended by paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013 and S.I. 2015/575.

(4)

Subsection (9) was amended by paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

(5)

Subsection (1)(a) was amended by paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013; subsection (1)(c) was amended by S.I. 2007/3253.

(6)

Section 114A was inserted by S.I. 2007/3253. Subsection (1)(a) was amended by paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.