SCHEDULES

SCHEDULE 25M1CASES EXCLUDED FROM DIRECTION-MAKING POWERS

Annotations:
Marginal Citations
M1

Source-1984 Sch.17; 1987 (No.2) s.65

PART II EXEMPT ACTIVITIES

11A

1

This paragraph has effect for the interpretation of paragraph 6(2B) above.

2

Contract of long-term insurance” means any contract falling within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

3

Protection business” means contracts of long-term insurance where—

a

either—

i

the contract has no surrender value; or

ii

the consideration consists of a single premium and the surrender value does not exceed the amount of that premium; and

b

the contract makes no provision for its conversion or extension in a manner which would result in its ceasing to fall within paragraph (a) above;

and references to protection business include a reference to reinsurance of protection business.

4

Insurance group” shall be construed in accordance with section 255A(5) of the Companies Act 1985 (meaning of “insurance group” in Part 7) but reading Part 7 of that Act—

a

as if it extended to Northern Ireland, and

b

as if any reference to a company (within the meaning of that Act) included a reference to a company as defined in Article 3 of the Companies (Northern Ireland) Order 1986,

but does not include such an insurance group if it falls within sub-paragraph (5) below.

5

Such an insurance group falls within this sub-paragraph if (within the meaning of that Part as so read) the parent company is a subsidiary undertaking of a parent company which is neither—

a

the parent company of an insurance group; nor

b

a subsidiary undertaking of the parent company of an insurance group.

6

A controlled foreign company is, in accordance with sub-paragraphs (4) and (5) above, a “member of an insurance group” if (within the meaning of that Part as so read) it is the parent company, or a subsidiary undertaking of the parent company, of an insurance group which is by virtue of sub-paragraph (4) above an insurance group for the purposes of paragraph 6(2B) above.

7

A company’s main business is “insuring or reinsuring large risks” if (and only if)—

a

the company’s main business is the effecting or carrying out of contracts of insurance; and

b

50% or more of its gross trading receipts from that business are derived from insuring or reinsuring large risks.

  • Large risks” is defined in paragraph 11B below.

8

In this paragraph—

  • contract of insurance” has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

  • contract of long-term insurance” has the meaning given by sub-paragraph (2) above.