Directive 2005/68/EC of the European Parliament and of the Council (repealed)Show full title

TITLE IV PROVISIONS RELATING TO FINITE REINSURANCE AND SPECIAL PURPOSE VEHICLES

Article 45 Finite reinsurance

1. The home Member State may lay down specific provisions concerning the pursuit of finite reinsurance activities regarding:

• mandatory conditions for inclusion in all contracts issued;

• sound administrative and accounting procedures, adequate internal control mechanisms and risk management requirements;

• accounting, prudential and statistical information requirements;

• the establishment of technical provisions to ensure that they are adequate, reliable and objective;

• investment of assets covering technical provisions in order to ensure that they take account of the type of business carried on by the reinsurance undertaking, in particular the nature, amount and duration of the expected claims payments, in such a way as to secure the sufficiency, liquidity, security, profitability and matching of its assets;

• rules relating to the available solvency margin, required solvency margin and the minimum guarantee fund that the reinsurance undertaking shall maintain in respect of finite reinsurance activities.

2. In the interests of transparency, Member States shall communicate the text of any measures laid down by their national law for the purposes of paragraph 1 to the Commission without delay.

Article 46 Special purpose vehicles

1. Where a Member State decides to allow the establishment within its territory of special purpose vehicles within the meaning of this Directive, it shall require prior official authorisation thereof.

2. The Member State where the special purpose vehicle is established shall lay down the conditions under which the activities of such an undertaking shall be carried on. In particular, that Member State shall lay down rules regarding:

• scope of authorisation;

• mandatory conditions for inclusion in all contracts issued;

• the good repute and appropriate professional qualifications of persons running the special purpose vehicle;

• fit and proper requirements for shareholders or members having a qualifying holding in the special purpose vehicle;

• sound administrative and accounting procedures, adequate internal control mechanisms and risk management requirements;

• accounting, prudential and statistical information requirements;

• the solvency requirements of special purpose vehicles.

3. In the interests of transparency, Member States shall communicate the text of any measures laid down by their national law for the purposes of paragraph 2, to the Commission without delay.