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INSPRU TP Transitional provisions

1Application

1.1

R

INSPRU TP 1 applies to an insurer unless it is:

(1)

a non-directive friendly society; or

(2)

an incoming EEA firm; or

(3)

an incoming Treaty firm.

Version of IPRU to be used

1.2

R

Any reference in INSPRU TP to IPRU(INS) is to the version in force on 30 December 2004.

Duration of transitional

1.3

R

INSPRU TP 1 applies until the relevant rule is revoked.

Continuing effect of waivers

1.4

R

A rule in INSPRU listed in the Table at INSPRU TP Table 2 is disapplied, or is modified in its application, to a firm:

(1)

in order to produce the same effect, including any conditions, as a waiver had on the corresponding rule in IPRU(INS);

(2)

for the same period as the waiver would have lasted, if shorter than the period in INSPRU TP 1.3;

provided the conditions set out in INSPRU TP 1.5 are satisfied.

1.5

R

The conditions referred to in INSPRU TP 1.4 are:

(1)

the rule is shown in the Table at INSPRU TP Table 2 as corresponding with the rule in IPRU(INS) in relation to which the waiver was granted to the firm;

(2)

the waiver was current as respects the firm immediately before 31 December 2004; and

(3)

there is no specific transitional rule relating to the waiver.

1.6

R

INSPRU TP 1.4 does not have effect if, and to the extent that, it would be inconsistent with any community obligation of the United Kingdom.

1.7

R

A firm which has the benefit of a waiver to which INSPRU TP 1.4 applies must:

(1)

notify the FSA immediately if it becomes aware of any matter which is material to the relevance or appropriateness of the waiver;

(2)

maintain a written record of the rule in INSPRU to which it considers the waiver applies; and

(3)

make the record available to the FSA on request.

INSPRU TP Table 2

Rules in INSPRU

Corresponding rules in IPRU (INS)

2.1.22

4.14(1)

3.1.34

5.11

3.1.39

5.11

5.11(4)

5.11(5)

5.11(9)

5.11(11)

3.1.58

2.3(2)

1.1.51

2.4(6)

1.1.56

2.4(1)

1.1.66

Appendix 2.1 2.4(1)(b)

Appendix 2.2 2.4(1)(b)

5.9(1)

1.2.40

5.9(2)

1.2.41

5.9(2)

1.2.43

5.10

1.2.74

5.16[deleted]

6.1.17

10.1

10.2

10.2(1)

10.2(2)

10.2(3)

6.1.23

10.2

10.2(1)

10.2(2)

10.2(3)

3

PRU waivers

Application

3.1

R

INSPRU TP 3 applies to an insurer unless it is:

(1)

a non-directive friendly society; or

(2)

an incoming EEA firm; or

(3)

an incoming Treaty firm.

Version of PRU to be used

3.2

R

A reference in INSPRU TP 3 to PRU is to the version in force on 30 December 2006.

Duration of transitional

3.3

R

INSPRU TP 3 applies until the relevant INSPRU rule is revoked.

Continuing effect of waivers

3.4

R

A rule in INSPRU is disapplied, or is modified in its application, to a firm:

(1)

in order to produce the same effect, including any conditions, as a waiver had on the rule in PRU;

(2)

for the same period as the waiver would have lasted, if shorter than the period in INSPRU TP 3.3;

provided the conditions set out in INSPRU TP 3.5 are satisfied.

3.5

R

The conditions referred to in INSPRU TP 3.4 are:

(1)

the rule in PRU in relation to which the waiver was granted to the firm was redesignated as the relevant rule in INSPRU by the Prudential Sourcebook for Insurers Instrument 2006;

(2)

the waiver was current as respects the firm immediately before 31 December 2006; and

(3)

there is no specific transitional rule relating to the waiver.

3.6

R

INSPRU TP 3.4 does not have effect if, and to the extent that, it would be inconsistent with any community obligation of the United Kingdom.

3.7

R

A firm which has the benefit of a waiver to which INSPRU TP 3.4 applies must:

(1)

notify the FSA immediately if it becomes aware of any matter which is material to the relevance or appropriateness of the waiver;

(2)

maintain a written record of the rule in INSPRU to which it considers the waiver applies; and

(3)

make the record available to the FSA on request.

4

EEA pure reinsurers

Application

4.1

R

INSPRU TP 4 applies to a pure reinsurer:

(1)

whose head office is in an EEA State other than the United Kingdom; and

(2)

which is not an incoming Treaty firm.

Duration of transitional

4.2

R

INSPRU TP 4 has effect in relation to a firm until 10 December 2008 or, if earlier, the date on which it becomes:

(1)

an incoming EEA firm by reason of having exercised its right to carry on the regulated activity of effecting or carrying out contracts of insurance in the United Kingdom in accordance with Schedule 3 to the Act (EEA Passport Rights); or

(2)

an incoming Treaty firm by reason of having exercised its right to carry on the regulated activity of effecting or carrying out contracts of insurance in the United Kingdom in accordance with Schedule 4 to the Act (Treaty Rights).

50% premiums and claims uplift for classes 11, 12 and 13; credit equalisation provision

4.3

R

The following rules or paragraphs of a rule do not apply to a firm:

(1)

INSPRU 1.1.56 R (1);

(2)

INSPRU 1.1.60 R (1); and

(3)

INSPRU 1.4.39 R to INSPRU 1.4.46 R.

5

Pure reinsurance groups

Application

5.1

R

INSPRU TP 5 applies to a pure reinsurer whose ultimate EEA insurance parent undertaking is the parent undertaking of a group comprised solely of reinsurance undertakings.

Duration of transitional

5.2

R

INSPRU TP 5 applies until 10 December 2007.

Group capital resources requirement

5.3

R

A firm need not comply with INSPRU 6.1.15 R.

26

Admissible assets

Application

6.1

R

INSPRU TP 6 applies to an insurer which is not a pure reinsurer.

Duration of transitional

6.2

R

INSPRU TP 6 applies until 30 December 2007.

GENPRU 2 Annex 7R

6.3

R

(1)

In determining whether its assets are admissible assets, instead of applying GENPRU 2 Annex 7, a firm may elect to treat as an admissible asset an asset that would have been an admissible asset for the purposes of the Integrated Prudential Sourcebook (PRU) as it was in force on 30 December 2006.

(2)

(1) does not apply when determining whether a derivative or quasi-derivative is an approved derivative or approved quasi-derivative.

(3)

If a firm applies (1) to any of its assets, it must do so for all of its assets except derivatives and quasi-derivatives.