Explanatory Note
(This note is not part of the Regulations)
These Regulations implement in part the provisions of Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance (OJ No L 323, 9.12.2005, p 1)(“the Reinsurance Directive”). The rest of the implementation is achieved through existing provisions of the Financial Services and Markets Act 2000 (c.8) (“FSMA”) and its accompanying secondary legislation, and the amendments made by the Reinsurance Directive Regulations 2007 (S.I. 2007/3253) and the Financial Services and Markets Act 2000 (Reinsurance Directive) Order 2007 (S.I. 2007/3254) and through rules made by the Financial Services Authority under powers available to them under FSMA.
Regulation 2 amends the Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001, (S.I. 2001/3625) so that a proposed transfer by a reinsurance undertaking must be publicised and notified to policyholders. Those requirements may be waived by the court in appropriate circumstances and where the applicant demonstrates that he has notified all policyholders of reinsurance contracts must be waived.
Regulation 3 makes consequential amendments to the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001, (S.I. 2001/2188) to add references to the relevant provisions of the Reinsurance Directive.
Regulation 4 makes consequential amendments to the Financial Services and Markets Act 2000 (Consultation with Competent Authorities) Regulations 2001, (S.I. 2001/2509) adding references to EEA reinsurance undertakings.
A transposition note has been prepared which sets out how the main elements of the Reinsurance Directive will be transposed into UK law. A Regulatory Impact Assessment of the effect of this instrument on the costs of business has been prepared. Both may be obtained from the Financial Stability and Risk Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. They are also available on HM Treasury's website (www.hm-treasury.gov.uk). Copies of both documents have been placed in the libraries of both Houses of Parliament.