The Insurance Companies (Accounts and Statements) (Amendment) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Insurance Companies (Accounts and Statements) Regulation 1983 by adding a new sub-paragraph (e) to paragraph 6 of Schedule 6. The effect of the amendment is to require, in the case of a company to which section 31A of the Insurance Companies Act 1982 applies, the inclusion, in the certificate required to be given by regulation 26(a), of a statement that the company has fully complied with the requirements of that section. The section, which was added to the 1982 Act by section 136 of the Financial Services Act 1986 (c. 60) and which came into force on 29th April 1988, requires an insurance company, whether established within or outside the United Kingdom, which carries on long term insurance business in the United Kingdom to secure that adequate arrangements are in force for securing that transactions affecting the assets of the company (other than transactions outside its control) do not operate unfairly between the section 28 fund on funds and the other assets of the company or, in a case where the compnay has more than one identified fund, between those funds. Subsection (2) of section 31A defines the expressions “the section 28 fund or funds” and “identified funds”.

Where the statement required by the new sub-paragraph (e) cannot be truthfully made, paragraph 8 of Schedule 6 to the 1983 Regulations requires the statement to be omitted and the fact of its omission to be stated in a note to the certificate required to be given by regulation 26(a).

The audit provisions of regulation 27 and paragraph 11 of Schedule 6 to the 1983 Regulations apply to the statement required by the new sub-paragraph (e).