SCHEDULES

C1F2SCHEDULE 2F] RECOGNITION IN THE UNITED KINGDOM OF EC AND EFTA COMPANIES

Annotations:
Amendments (Textual)
F2

Sch. 2F inserted (1.7.1994) by S.I. 1994/1696, reg. 45(2), Sch. 6

Modifications etc. (not altering text)
C1

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 F3Treasury—

i

a notice which contains the requisite details; and

ii

a certificate in accordance with sub-paragraph (3) below; and

b

that either—

i

the F3TreasuryF4have informed that authority of 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; or

ii

the period of two months beginning with the day on which the F3Treasury 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 F3Treasury 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 F5they 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 F3Treasury 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 F6Treasury, 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

that the F6TreasuryF7have received from that authority a notice stating that it has approved the proposed change; and

c

that either—

i

the F6TreasuryF8have informed that authority 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; or

ii

the period of two months beginning with the day on which the company gave the F6Treasury 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 F6Treasury, and to the supervisory authority in its home State, stating the details of the change.

4

The F6Treasury 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 F9they 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.