COND 2.6 Additional conditions
Paragraph 8 of Schedule 6 to the Act |
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(1) |
If this paragraph applies to the person concerned, he must, for the purposes of such provisions of this Act as may be specified, satisfy specified additional conditions. |
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(2) |
This paragraph applies to a person who: |
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(a) |
has his head office outside the EEA; and |
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(b) |
appears to the [FSA] to be seeking to carry on a regulated activity relating to insurance business. |
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Article 3 of the financial services and Markets Act 2000 (Variation of Threshold Conditions ) Order 2001 (SI 2001/2507) |
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3.- |
(1) |
If paragraph 8 of Schedule 6 (additional conditions applying to non-EEA insurers) applies to the person concerned, it must, for the purposes of section 41 and Schedule 6, satisfy the following additional conditions - |
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(a) |
it must have a representative who is resident in the United Kingdom and who has authority to bind it in its relations with third parties and to represent it in its relations with the [FSA] and the courts in the United Kingdom; |
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(b) |
subject to paragraph (2), if the person concerned is not a Swiss general insurance company - |
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(i) |
it must be a body corporate entitled under the law of the place where its head office is situated to effect and carry out contracts of insurance; |
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(ii) |
it must have in the United Kingdom assets of such value as may be specified; |
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(iii) |
unless the regulated activity in question relates solely to reinsurance, it must have made a deposit (of money or securities, as may be specified) of such an amount and with such a person as may be specified, and on such terms and subject to such other provisions as may be specified. |
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(2) |
Where the person concerned is seeking to carry on an activity relating to insurance business in one or more other EEA States (as well as in the United Kingdom), and the [FSA] and the supervisory authority in the other EEA State or States concerned so agree - |
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(a) |
the reference in paragraph (1)(b)(ii) to the United Kingdom is to be read as a reference to the United Kingdom and the other EEA State or States concerned; and |
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(b) |
the reference in paragraph (1)(b)(iii) to such a person as may be specified is to be read as a reference to such a person as may be agreed between the [FSA] and the other supervisory authority or authorities concerned.1 |
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The Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001 (SI 2001/2507) imposes certain additional conditions on non-EEA insurers, as set out above.
This order implements requirements under the Insurance Directives, and the Act extends these requirements to firms outside of the EEA.
The effect of article 3(a) of the order is that a non-EEA insurer (including a Swiss General insurance company) must appoint an authorised UK representative.
- (1)
A non-EEA insurer must be a body corporate formed under the law of the country where its head office is situated.
- (2)
A person seeking to carry on insurance business in the United Kingdom must have assets in the United Kingdom to a value specified in PRU2. Where the applicant wants to carry on insurance business in other EEA States, the applicant must have assets in those other EEA States as are agreed between the FSA and the supervisory authorities in the other states.
2 - (3)
Unless the regulated activity to be carried on by the applicant relates solely to reinsurance business, the applicant must make a deposit of an amount, and type and on terms with a person and agreed between the FSA and the supervisory authorities in other EEA States where the applicant wishes to carry on insurance business. This deposit will be subject to provisions in PRU 7.6.2
2
- (1)
The additional conditions set out in COND 2.5.6 G (1), (2) and (3) do not apply to Swiss general insurance companies.