This paragraph applies where the Secretary of State approves an application made under paragraph 6 above and either—
the transferor is a UK or non-EC company and, as regards any policy included in the transfer which evidences a contract of direct insurance, a member State other than the United Kingdom is the member State in which the risk is situated; or
as regards any EFTA policy included in the transfer, an EEA State other than the United Kingdom is the EEA State in which the risk is situated.
The Secretary of State shall direct that—
notice of his decision, and of the execution of any instrument giving effect to the transfer, shall be published in the member State or, as the case may be, the EEA State in which the risk is situated; and
the notice shall specify the period during which the policy holder may exercise any right to cancel the policy;
and the instrument shall not bind the policy holder if either such a notice is not so published or the policy holder exercises any such right during the period so specified.
The law of the member State or, as the case may be, the EEA State in which the risk is situated shall determine—
whether the policy holder has a right to cancel the policy; and
the conditions applicable to any such right.