SCHEDULES
C5F53SCHEDULE 2F] RECOGNITION IN THE UNITED KINGDOM OF EC AND EFTA COMPANIES
Sch. 2F: Power to contract out certain functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 60
PART IEC COMPANIES CARRYING ON BUSINESS ETC. IN THE UNITED KINGDOM
Requirements for carrying on direct insurance business
1
1
An EC company shall not carry on direct insurance business of a class or part of a class through a branch in the United Kingdom unless—
a
the company is authorised in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive to carry on insurance business of that class or part of a class; and
b
the requirements of this paragraph have been complied with in respect of that branch.
2
The requirements of this paragraph are—
a
that the supervisory authority in the company’s home State has sent to the F54Treasury—
i
a notice which contains the requisite details; and
ii
a certificate in accordance with sub-paragraph (3) below; and
b
that either—
i
ii
the period of two months beginning with the day on which the F54Treasury received the notice and certificate mentioned in paragraph (a) above has elapsed.
3
A certificate given in respect of the company by the supervisory authority in its home State is in accordance with this sub-paragraph if it—
a
attests that the company has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
i
Articles 16 and 17 of the first general insurance Directive, and
ii
Articles 18, 19 and 20 of the first long term insurance Directive; and
b
indicates the classes of business which the company is authorised to carry on in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive.
4
The F54Treasury shall as soon as practicable—
a
acknowledge receipt of the documents sent by the supervisory authority in the company’s home State; and
b
where necessary, send a copy of those documents and a note of the date of their receipt to every other authority which F56they know is a connected UK authority.
5
Any connected UK authority which receives any documents under sub-paragraph (4)(b) above shall, within one month of the date on which they were received, inform the F54Treasury in writing of such provisions of the Acts, rules and regulations applying to insurance companies which the authority regulates as, having regard to the insurance business mentioned in the documents, it considers appropriate.
2
1
An EC company shall not change the requisite details of a branch—
a
which has been established by it in the United Kingdom; and
b
through which it carries on direct insurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
2
Subject to sub-paragraph (3) below, the requirements of this paragraph are—
a
that the company has given a notice to the F57Treasury, and to the supervisory authority in its home State, stating the details of the proposed change not less than one month before the change is to take place;
b
c
that either—
i
ii
the period of two months beginning with the day on which the company gave the F57Treasury the notice under paragraph (a) above has elapsed.
3
In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the F57Treasury, and to the supervisory authority in its home State, stating the details of the change.
4
The F57Treasury shall as soon as practicable—
a
acknowledge receipt of the documents sent under sub-paragraph (2) or (3) above;
b
send a copy of those documents, and a note of the date of their receipt, to every other authority which F60they know is a connected UK authority; and
c
in the case of a notice under sub-paragraph (3) above, inform the supervisory authority in the home State of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the company in carrying on insurance business through the branch.
Requisite details for purposes of paragraphs 1 and 2
3
The requisite details for the purposes of paragraphs 1 and 2 above are—
a
the name of the company;
b
the address of the branch in the United Kingdom and confirmation that it is an address for service on the company’s authorised agent;
c
the name of the company’s authorised agent;
d
a scheme of operations prepared in accordance with such requirements as may be imposed by the supervisory authority in its home State; and
e
in the case of a company which intends to cover relevant motor vehicle risks, confirmation that the company has become a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).
Requirements for carrying on reinsurance business
4
1
An EC company shall not carry on reinsurance business of any description through a branch in the United Kingdom unless—
a
the company is entitled under the law of its home State to carry on business of that description; and
b
the requirements of this paragraph have been complied with in respect of that branch.
2
The requirements of this paragraph are—
a
that the company has served on the F61Treasury—
i
a written notice stating its intention to carry on reinsurance business and containing the requisite details; and
ii
a statement from the supervisory authority in its home State stating the classes of business which the company carries on and declaring that the company has the required margin of solvency or minimum guarantee fund; and
5
1
An EC company shall not change the requisite details of a branch—
a
which has been established by it in the United Kingdom; and
b
through which it carries on reinsurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
2
Subject to sub-paragraph (3) below, the requirements of this paragraph are that the company has given a notice to the F63Treasury stating the details of the proposed change not less than one month before the change is to take place.
3
In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the F63Treasury stating the details of the change.
Requisite details for purposes of paragraphs 4 and 5
6
The requisite details for the purposes of paragraphs 4 and 5 above are—
a
the name of the company;
b
the address of the branch in the United Kingdom and confirmation that it is an address for service on the company’s authorised agent;
c
the name of the company’s authorised agent;
d
a scheme of operations containing particulars of the reinsurance business to be carried on through the branch.
Power of Secretary of State where notice given under paragraph 4 or 5
7
1
2
3
Before giving a direction under sub-paragraph (2) above, the F64Treasuryshall serve on the company a written notice stating—
a
4
Where representations are made in response to a notice under sub-paragraph (3) above, the F64Treasury shall take them into account before giving a direction.
Requirements for providing insurance
C68
1
An EC company shall not provide insurance of a class or part of a class in the United Kingdom unless the company is authorised in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive to carry on insurance business of that class or part of a class and either—
a
the requirements of this paragraph have been complied with in respect of that insurance; or
b
the insurance is provided by the company participating in a Community co-insurance operation otherwise than as the leading insurer.
2
The requirements of this paragraph are—
a
that the supervisory authority in the company’s home State has sent to the F69Treasury a notice containing the requisite details and a certificate in accordance with sub-paragraph (3) below; and
b
that the company has been notified by that authority that it has sent such a notice to the F69Treasury.
3
A certificate is in accordance with this sub-paragraph if it—
a
attests that the company has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
i
Articles 16 and 17 of the first general insurance Directive, and
ii
Articles 18, 19 and 20 of the first long term insurance Directive; and
b
indicates the classes of business which the company is authorised to carry on in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive.
9
1
An EC company shall not change the requisite details relating to the provision ofinsurance in the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.
2
Subject to sub-paragraph (3) below, the requirements of this paragraph are—
a
that the company has given a notice to the supervisory authority in its home State stating the details of the proposed change; and
b
that that authority has passed to the F70Treasury the information contained in that notice.
3
In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall, as soon as practicable, give a notice to the supervisory authority in its home State stating the details of the change.
Requisite details for purposes of paragraphs 8 and 9
10
The requisite details for the purposes of paragraph 8 and 9 are—
a
the name and address of the company;
b
the nature of the risks or commitments which the company proposes to cover in the United Kingdom; and
c
in the case of a company which intends to cover relevant motor vehicle risks—
i
the name and address of the claims representative, and
ii
confirmation that the company has become a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).
Additional requirements for covering relevant motor vehicle risks
11
An EC company shall not provide insurance in the United Kingdom to cover relevant motorvehicle risks unless—
a
it is a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946); and
b
either it has appointed a claims representative or the insurance is provided by it participating in a Community co-insurance operation otherwise than as the leading insurer.
Power to prevent disposal of assets
12
1
The powers conferred on the F71Treasury by section 40A above shall be exercisable in relation to an EC company if the supervisory authority in the company’s home State has, in accordance with Article 20(5) of the first general insurance Directive or Article 24(5) of the first long term insurance Directive, requested the F71Treasury to prohibit the free disposal of assets of that company and has confirmed—
a
that the company has failed to comply with the requirements of Article 15 of the first general insurance Directive or Article 17 of the first long term insurance Directive;
b
that the solvency margin of the company has fallen below the minimum required by Article 16(3) of the first general insurance Directive or Article 19 of the first long term insurance Directive; or
c
that the solvency margin of the company has fallen below the guarantee fund as defined in Article 17 of the first general insurance Directive or Article 20 of the first long term insurance Directive.
2
Powers to obtain information
13
1
Subject to sub-paragraph (2) below, the powers conferred by section 44 above on the F73Treasury or persons authorised by F74them shall be exercisable in respect of an EC company if either—
a
the following requirements are fulfilled, namely—
i
the supervisory authority in the company’s home State has made a written request to the F73Treasury to obtain information from the company; and
2
The F73Treasury shall not exercise the powers conferred by subsection (2A), (2B) or(4A) of section 44 above in respect of an EC company unless the requirements of sub-paragraph (1)(a) above are fulfilled.
14
1
The powers conferred by section 44 above on the F77Treasury shall be exercisable in respect of an EC company by a person authorised by the supervisory authority in the company’s home State if—
a
the information to be requested by that person is necessary to enable the authority to perform its obligations in respect of the company under Article 19 of the first general insurance Directive or Article 23 of the first long term insurance Directive; and
b
the authority has notified the F77Treasury in writing of that person’s intention to exercise those powers.
2
An officer or agent of the F77Treasury may accompany a person so authorised while he is acting in the exercise of those powers.
F7814A
Paragraphs 13 and 14 above shall apply in relation to the powers conferred by section 44 above on the Secretary of State or persons authorised by him as they apply in relation to the powers conferred by that section on the Treasury or persons authorised by them; and for those purposes the references in those paragraphs to the Treasury shall be construed as references to the Secretary of State.
Powers to obtain information
13
1
Subject to sub-paragraph (2) below, the powers conferred by section 44 above on the Treasury or persons authorised by them shall be exercisable in respect of an EC company if either—
a
the following requirements are fulfilled, namely—
i
the supervisory authority in the company’s home State has made a written request to the Treasury to obtain information from the company; and
ii
the Treasurythemthat the information to be acquired is necessary to enable that supervisory authority to perform its obligations under Article 19 of the first general insurance Directive or Article 23 of the first long term insurance Directive; or
b
the Treasuryconsider the exercise of those powers in respect of that company to be necessary to enable them to perform their functions under this Act.
2
The Treasury shall not exercise the powers conferred by subsection (2A), (2B) or(4A) of section 44 above in respect of an EC company unless the requirements of sub-paragraph (1)(a) above are fulfilled.
14
1
The powers conferred by section 44 above on the Treasury shall be exercisable in respect of an EC company by a person authorised by the supervisory authority in the company’s home State if—
a
the information to be requested by that person is necessary to enable the authority to perform its obligations in respect of the company under Article 19 of the first general insurance Directive or Article 23 of the first long term insurance Directive; and
b
the authority has notified the Treasury in writing of that person’s intention to exercise those powers.
2
An officer or agent of the Treasury may accompany a person so authorised while he is acting in the exercise of those powers.
Residual power to protect policy holders
15
The F79Treasury may exercise F80their powers under section 45 above in relation to an EC company if the supervisory authority in the company’s home State—
a
has informed the F79Treasury that the company’s authorisation has been withdrawn, or has lapsed, in accordance with Article 22 of the first general insurance Directive or Article 26 of the first long term Directive; and
b
in accordance with that Article, has requested the F79Treasury to take measures in the United Kingdom to safeguard the interests of policy holders of the company.
Powers of intervention
16
1
2
If the company fails to comply with a requirement under sub-paragraph (1) above, the F81Treasury shall notify the supervisory authority in the home State.
3
If, after the F81TreasuryF83have taken the action mentioned in sub-paragraphs (1) and (2) above, the company persists in contravening the provision in question, the F81Treasury may, after informing the supervisory authority of the home State, direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of any specified description, in the United Kingdom.
4
5
6
A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.
7
A requirement or direction under this paragraph may be varied or revoked by the F81Treasury.
Power to withdraw recognition
17
1
This paragraph applies where—
a
an EC company is carrying on insurance business or providing insurance in the United Kingdom; and
2
The F86Treasury may direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of a specified description, in the United Kingdom through all, or any specified, establishments.
3
4
5
A direction under this paragraph does not prevent the company from effecting or carrying outa contract of insurance in pursuance of a term of a subsisting contract of insurance.
Sch. 2F inserted (1.7.1994) by S.I. 1994/1696, reg. 45(2), Sch. 6