HC Deb 09 February 2000 vol 344 cc334-5

2.—(1) A certificate under this paragraph is to be given—

  1. (a) by the relevant authority; or
  2. (b) in a case in which there is no relevant authority, given by the Authority.

(2) A certificate given under sub-paragraph (1)(a) is one certifying that, taking the proposed transfer into account—

  1. (a) the transferee possesses, or will possess before the scheme takes effect, the necessary margin of solvency; or
  2. (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 Authority has received from the authority which it considers to be the authority responsible for supervising insurance companies in the place to which the business is to be transferred that, taking the proposed transfer into account—

  1. (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
  2. (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—

  1. (a) if the transferee is an EEA firm falling within paragraph 5(d) of Schedule 3, its home state regulator;
  2. (b) if the transferee is a Swiss general insurance company, the authority responsible for supervising insurance companies in Switzerland;
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  3. (c) if the transferee is an authorised person not falling within paragraph (a) or (b), the Authority.

(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.

(8) "Swiss general insurance company" means a company—

  1. (a) whose head office is in Switzerland;
  2. (b) which has permission to carry on regulated activities consisting of the effecting and carrying out of general insurance contracts; and
  3. (c) whose permission is not restricted to reinsurance business.