The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

Relevant insurance activity: non-real time communications: reinsurance and large risksU.K.

25.—(1) The financial promotion restriction does not apply to any non-real time communication which relates to a relevant insurance activity and concerns only—

(a)a contract of reinsurance; or

(b)a contract that covers large risks.

(2) “Large risks” means—

(a)risks falling within paragraph 4 (railway rolling stock), 5 (aircraft), 6 (ships), 7 (goods in transit), 11 (aircraft liability) or 12 (liability of ships) of Schedule 1 to the Regulated Activities Order;

(b)risks falling within paragraph 14 (credit) or 15 (suretyship) of that Schedule provided that the risks relate to a business carried on by the recipient;

(c)risks falling within paragraph 3 (land vehicles), 8 (fire and natural forces), 9 (damage to property), 10 (motor vehicle liability), 13 (general liability) or 16 (miscellaneous financial loss) of that Schedule provided that the risks relate to a business carried on by the recipient and that the condition specified in paragraph (3) is met in relation to that business.

(3) The condition specified in this paragraph is that at least two of the three following criteria were exceeded in the most recent financial year for which information is available prior to the making of the communication—

[F1(a)the aggregate of the amounts shown as assets in the balance sheet of the business was 6.2 million euros;]

(b)the net turnover (within the meaning given to “turnover” by [F2section 474(1) of the 2006 Act] was 12.8 million euros;

(c)the number of employees (within the meaning given by [F3section 465(6) of the 2006 Act] was 250;

and for a financial year which is a company's financial year but not in fact a year, the net turnover of the recipient shall be proportionately adjusted.

(4) For the purposes of paragraph (3), where the recipient is a member of a group for which consolidated accounts F4... are drawn up, the question whether the condition met in that paragraph is met is to be determined by reference to those accounts.

Textual Amendments