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While this statement sets out the PRA’s expectations in relation to insurance business transfers, the PRA will consult with the Financial Conduct Authority (FCA) in advance of forming any decision in respect of a transfer and will seek to avoid introducing, inadvertently, incompatible requirements. The FCA has also set out its own approach to and expectations in respect of insurance business transfers in SUP 18 of the FCA Handbook.
Chapter 1 is aimed at any firm, or one or more underwriting members of the Society of Lloyd’s, or one or more persons who have ceased to be such a member, proposing to make an application to transfer the whole or part of its business by an insurance business transfer scheme under section 107 of the Financial Services and Markets Act 2000 (FSMA) or to accept such a transfer. Chapter 1 is also aimed at the independent expert approved by the PRA to make the scheme report under section 109 of FSMA.
Chapter 2 is aimed at any firm proposing to accept certain transfers of insurance business taking place outside of the United Kingdom.
Chapter 3 is aimed at any friendly societies proposing to amalgamate under section 85 of the Friendly Societies Act 1992, to any friendly society proposing to transfer engagements under section 86 of that Act to another person or body of persons and to any person or body of persons (whether or not a friendly society) proposing to accept such a transfer.
Chapters 1 and 2 should be read in conjunction with Part VII of FSMA, all relevant secondary legislation and the high-level expectations outlined in The PRA’s approach to insurance supervision. Chapter 3 should be read in conjunction with the Friendly Societies Act 1992 and The PRA’s approach to insurance supervision.
In this statement, reference to ‘the regulators’ means the PRA and the FCA.