SCHEDULES
SCHEDULE 12 Transfer schemes: certificates
C1Part I Insurance Business Transfer Schemes
Certificates as to margin of solvency
C22
1
A certificate under this paragraph is to be given—
a
by the relevant authority; or
b
in a case in which there is no relevant authority, by the F8appropriate regulator.
2
A certificate given under sub-paragraph (1)(a) is one certifying that, taking the proposed transfer into account—
a
the transferee possesses, or will possess before the scheme takes effect, the necessary margin of solvency; or
b
there is no necessary margin of solvency applicable to the transferee.
3
A certificate under sub-paragraph (1)(b) is one certifying that the F5appropriate regulator has received from the authority which it considers to be the authority responsible for supervising persons who effect or carry out contracts of insurance in the place to which the business is to be transferred F6certification that, taking the proposed transfer into account—
a
the transferee possesses or will possess before the scheme takes effect the margin of solvency required under the law applicable in that place; or
b
there is no such margin of solvency applicable to the transferee .
4
“Necessary margin of solvency” means the margin of solvency required in relation to the transferee, taking the proposed transfer into account, under the law which it is the responsibility of the relevant authority to apply.
5
“Margin of solvency” means the excess of the value of the assets of the transferee over the amount of its liabilities.
6
“Relevant authority” means—
a
if the transferee is an EEA firm falling within paragraph 5(d) F1or (da) of Schedule 3, its home state regulator;
F4aa
if the transferee is a non-EEA branch, the supervisory authority of the EEA State in which the transferee is situated or, where appropriate, the supervisory authority of an EEA State which supervises the state of solvency of the entire business of the transferee’s agencies and branches within the EEA in accordance with Article 167 of the Solvency 2 Directive;
b
if the transferee is a Swiss general insurer, the authority responsible in Switzerland for supervising persons who effect or carry out contracts of insurance;
c
i
the PRA, if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4;
ii
the FCA, if the transferee is a person with a Part 4A permission or with permission under Schedule 4 but is not a PRA-authorised person.
7
In sub-paragraph (6), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed scheme takes effect.
F37A
“Supervisory authority” has the same meaning as in the Solvency 2 Directive.
8
“Swiss general insurer” means a body—
a
whose head office is in Switzerland;
b
which has permission to carry on regulated activities consisting of the effecting and carrying out of contracts of general insurance; and
c
whose permission is not restricted to the effecting or carrying out of contracts of reinsurance.
F79
“Non-EEA branch” means a branch or agency which has received authorisation under Article 162 of the Solvency 2 Directive.
Sch. 12 Pt. I (paras. 1-6) applied (1.12.2001) by S.I. 2001/3626, arts. 1, 3(c)