Related provisions for SUP 18.2.55
1 - 11 of 11 items.
(1) If the transferee is (or will be) an EEA firm (authorised in its Home State to carry on insurance business under the Solvency II Directive6) or a Swiss general insurance company, then the appropriate regulator8 has to consult the transferee's Home State regulator, who has 3 months to respond. It will be necessary for the appropriate regulator8 to obtain from the transferee's Home State regulator a certificate confirming that the transferee will meet the Home State's solvency
The purpose of the scheme report is to inform the court and the independent expert, therefore, 8has a duty to the court. However reliance will also be placed on it by policyholders, by reinsurers,8 by others affected by the scheme and by the regulators8. The amount of detail that it is appropriate to include will depend on the complexity of the scheme, the materiality of the details themselves and the circumstances.88
The regulators are8 entitled to be heard by the court on any application for a transfer. A consideration for the regulators8 in determining whether to oppose a transfer would be their8 view on whether adequate steps had been taken to tell policyholders and, as appropriate, other affected persons,8about the transfer and whether they had adequate information and time to consider it. The regulators8 would not normally consider adequate a period of less than six weeks between sending
The assessment is a continuing process, starting when the scheme promoters first approach the appropriate regulator8 about a proposed scheme. Each regulator will have an interest in assessing the scheme.8Among the considerations that may be relevant to both the depth of consideration each gives to, and each regulator's8 opinion on, a scheme are:88(1) the potential risk posed by the transfer to its statutory objectives8;8(2) the purpose of the scheme;(3) how the security of policyholders'
8If at any time the regulators, or either of them, conclude that policyholders and/or, as appropriate, other relevant affected persons have not had adequate information and/or sufficient time to consider information, they will seek to resolve such issues with the scheme promoters. This may require further notification. If either regulator remains unsatisfied that such policyholders and/or other persons have received adequate information and sufficient time to consider it they
For a transfer of long-term insurance business, the appropriate authority2 may, under section 88 of the Friendly Societies Act 1992, require a report from an independent actuary on the terms of the proposed transfer and on his opinion of the likely effects of the transfer on long-term policyholder members of either the transferor or (if it is a friendly society) the transferee. A summary is included in the statement sent to members (see SUP 18.4.13 G) and the full report is required
The regulators are likely to consider3 a novation or a number of novations as amounting to3an insurance business transfer only if their number or value were such that the novation was to be regarded as a transfer of part of the business. A novation is an agreement between the policyholder and two insurers whereby a contract with one insurer is replaced by a contract with the other. If3 an insurer agrees to meet the liabilities (this may include undertaking the administration of
Discussions with the appropriate regulator6 are particularly relevant where the firm has to discharge obligations to its customers or policyholders before it can cease carrying on a regulated activity. This may be the case, for example, where the firm is an insurer, a bank a dormant account fund operator,4 or, as is often the case, holding client money or customer assets.6