SCHEDULES

C4SCHEDULE 6 Threshold Conditions

Annotations:
Modifications etc. (not altering text)

Part I Part IV Permission

Location of offices

2

1

F3Subject to F4sub-paragraphs (2A) and (3), if the person concerned is a body corporate constituted under the law of any part of the United Kingdom—

a

its head office, and

b

if it has a registered office, that office,

must be in the United Kingdom.

2

If the person concerned has its head office in the United Kingdom but is not a body corporate, it must carry on business in the United Kingdom.

F52A

If—

a

the regulated activity concerned is any of the investment services and activities, and

b

the person concerned is a body corporate with no registered office,

sub-paragraph (2B) applies in place of sub-paragraph (1).

2B

If the person concerned has its head office in the United Kingdom, it must carry on business in the United Kingdom.

F63

If the regulated activity concerned is an insurance mediation activity, sub-paragraph (1) does not apply.

4

If the regulated activity concerned is an insurance mediation activity, the person concerned—

a

if he is a body corporate constituted under the law of any part of the United Kingdom, must have its registered office, or if it has no registered office, its head office, in the United Kingdom;

b

if he is a natural person, is to be treated for the purposes of sub-paragraph (2), as having his head office in the United Kingdom if his residence is situated there.

5

Insurance mediation activity” means any of the following activities—

a

dealing in rights under a contract of insurance as agent;

b

arranging deals in rights under a contract of insurance;

c

assisting in the administration and performance of a contract of insurance;

d

advising on buying or selling rights under a contract of insurance;

e

agreeing to do any of the activities specified in sub-paragraph (a) to (d).

6

Paragraph (5) must be read with—

a

section 22;

b

any relevant order under that section; and

c

Schedule 2.

F72AF7Appointment of claims representatives

1

If it appears to the Authority that—

a

the regulated activity that the person concerned is carrying on, or is seeking to carry on, is the effecting or carrying out of contracts of insurance, and

b

contracts of insurance against damage arising out of or in connection with the use of motor vehicles on land (other than carrier’s liability) are being, or will be, effected or carried out by the person concerned,

that person must have a claims representative in each EEA State other than the United Kingdom.

2

For the purposes of sub-paragraph (1)(b), contracts of reinsurance are to be disregarded.

3

A claims representative is a person with responsibility for handling and settling claims arising from accidents of the kind mentioned in Article 1(2) of the fourth motor insurance directive.

4

In this paragraph “fourth motor insurance directive” means Directive 2000/26/EC of the European Parliament and of the Council of 16th May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC.

Adequate resources

C24

1

The resources of the person concerned must, in the opinion of the Authority, be adequate in relation to the regulated activities that he seeks to carry on, or carries on.

2

In reaching that opinion, the Authority may—

a

take into account the person’s membership of a group and any effect which that membership may have; and

b

have regard to—

i

the provision he makes and, if he is a member of a group, which other members of the group make in respect of liabilities (including contingent and future liabilities); and

ii

the means by which he manages and, if he is a member of a group, which other members of the group manage the incidence of risk in connection with his business.

Suitability

C35

The person concerned must satisfy the Authority that he is a fit and proper person having regard to all the circumstances, including—

a

his connection with any person;

b

the nature of any regulated activity that he carries on or seeks to carry on; and

c

the need to ensure that his affairs are conducted soundly and prudently.