SCHEDULES
F53C5SCHEDULE 2G RECOGNITION IN OTHER EEA STATES OF UK INSURERS
Sch. 2G: Power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 61
PART IUK INSURERS CARRYING ON BUSINESS ETC. IN OTHER MEMBER STATES
Requirements for carrying on direct insurance business
1
1
A UK insurer shall not carry on direct insurance business of a class or part of a class through a branch in a member State other than the United Kingdom unless—
a
the insurer is authorised under section 3 or 4 of this Act to carry on insurance business of that class or part of a class or is a member of Lloyd’s; 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 insurer has given to the F54Treasury a notice containing the requisite EC details and, in the case of a company, the requisite UK details;
b
that the F54TreasuryF55have given to the supervisory authority of the member State in which the branch is to be established (“the member State of the branch”)—
i
a notice which contains the requisite EC details; and
ii
a certificate in accordance with sub-paragraph (3) below; and
c
that either—
i
that authority has informed the F54Treasury of the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or
ii
the period of two months beginning with the day on which the F54Treasury gave that authority the certificate mentioned in paragraph (b) above has elapsed.
3
A certificate is in accordance with this sub-paragraph if it—
a
attests that the insurer 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 insurance business which the insurer is authorised to carry on in the United Kingdom.
4
The F54Treasury shall, within the period of three months beginning with the date onwhich the insurer’s notice was received—
a
give the notice and certificate referred to in sub-paragraph (2)(b) above; or
b
refuse to give either or both of those documents.
5
The Treasury shall, within the period of three months referred to in sub-paragraph(4) above, notify the insurer—
a
b
that F56they have refused to give either or both of those documents, stating the reasons for the refusal.
6
In the case of a UK company, the F54Treasury shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the business to be carried on through the branch, it appears to F58them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
7
2
1
A UK insurer shall not change the requisite EC details of a branch—
a
which has been established by it in a member State other than the United Kingdom (“the member State of the branch”); 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 insurer has given a notice to the F60Treasury, and to the supervisory authority in the member State of the branch, stating the details of the proposed change not less than one month before the change is to take place;
b
c
that either—
i
that authority has informed the insurer of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or
ii
the period of two months beginning with the day on which the insurer gave that authority the notice of the proposed change in accordance with paragraph (a) above has elapsed.
3
In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable (whether before or after the change) give a notice to the F60Treasury, and to the supervisory authority in the member State of the branch, stating the details of the change.
4
The F60Treasury shall, as soon as practicable after receiving a notice under sub-paragraph(2)(a) above—
a
give notice to the supervisory authority in the member State of the branch informing it of the proposed change; or
b
refuse to give such notice.
5
The F60Treasury shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—
a
b
that F63they refused to give the notice, stating the reasons for that refusal.
6
In the case of a UK company, the F60Treasury shall not refuse to give the notice referred to in sub-paragraph (4)(a) above unless, having regard to the proposed change, it appears to F64them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
3
1
A UK company shall not change the requisite UK details of a branch—
a
which has been established by it in a member State other than 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 that the company has given a notice to the F65Treasury stating the details of the proposed change at least one month before the change is effected.
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 F65Treasury stating the details of the change.
Sch. 2G inserted (1.7.1994) by S.I. 1994/1696, reg. 46(2), Sch. 7