Requirements for carrying on direct insurance businessU.K.
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 [F2Treasury] a notice containing the requisite EC details and, in the case of a company, the requisite UK details;
(b)that the [F2Treasury][F3have] 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 [F2Treasury] 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 [F2Treasury] 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 [F2Treasury] 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)that [F4they have] given the notice and certificate referred to in sub-paragraph (2)(b) above, stating the date on which [F5they did] so; or
(b)that [F4they 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 [F2Treasury] 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 [F6them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
(7)Where the supervisory authority of the member State of the branch has informed the [F2Treasury] as mentioned in sub-paragraph (2)(c)(i) above, [F7the Treasury]shall forward the information to the insurer.
Textual Amendments
F2Word in Sch. 2G para. 1 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)
F3Word in Sch. 2G para. 1(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(a) (with art. 7)
F4Words in Sch. 2G para. 1(5) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(b)(i)(with art. 7)
F5Words in Sch. 2G para. 1(5)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(b)(ii)(with art. 7)
F6Word in Sch. 2G para. 1(6) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(c) (with art. 7)
F7Words in Sch. 2G para. 1(7) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(d) (with art. 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 [F8Treasury], 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)that the [F8Treasury][F9have] sent to that authority a notice in accordance with sub-paragraph (4)(a) below; and
(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 [F8Treasury], and to the supervisory authority in the member State of the branch, stating the details of the change.
(4)The [F8Treasury] 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 [F8Treasury] shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—
(a)that [F10they have] given the notice referred to in that sub-paragraph, stating the date on which [F10they did] so; or
(b)that [F11they] refused to give the notice, stating the reasons for that refusal.
(6)In the case of a UK company, the [F8Treasury] 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 [F12them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
Textual Amendments
F8Word in Sch. 2G para. 2 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)
F9Word in Sch. 2G para. 2(2)(b) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(a) (with art. 7)
F10Words in Sch. 2G para. 2(5)(a) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(b)(i) (with art. 7)
F11Word in Sch. 2G para. 2(5)(b) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(b)(ii) (with art. 7)
F12Word in Sch. 2G para. 2(6) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(c) (with art. 7)
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 [F13Treasury] 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 [F13Treasury] stating the details of the change.
Textual Amendments
F13Word in Sch. 2G para. 3(2)(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)