PART 2Authorisation and supervision of insurance risk transformation
Amendment of the Regulated Activities Order5
1
The Regulated Activities Order is amended as follows.
2
After article 12A (information society services and managers of UCITS and AIFs) M1 insert—
Transformer vehicles: insurance risk transformation12B
A transformer vehicle M2 does not carry on an activity of a kind specified by article 10 by assuming a risk from an undertaking, provided the assumption of the risk is a specified kind of activity falling within article 13A (transformer vehicles: insurance risk transformation).
3
After article 13 (application of sections 327 and 332 of FSMA) insert—
CHAPTER 3AInsurance risk transformation
13ATransformer vehicles: insurance risk transformation
It is a specified kind of activity for a transformer vehicle to assume a risk from an undertaking where—
a
the undertaking assumes a risk under a contract of insurance (“the underlying risk”); and
b
the assumption of risk by the transformer vehicle has the legal or economic effect of transferring some or all of the underlying risk to the transformer vehicle.
4
After article 19 (risk-management) M4 insert—
Transformer vehicles: insurance risk transformation19A
A transformer vehicle does not carry on an activity of a kind specified by article 14 by assuming a risk from an undertaking, provided the assumption of the risk is a specified kind of activity falling within article 13A (transformer vehicles: insurance risk transformation).