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Regulation 20 Application: Part IV

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to paragraph (2) below, this Part of these Regulations applies with respect to the determination of the value of assets of a society for the purposes of—

(a)

section 48 of the 1992 Act;

(b)

any actuarial investigation carried out pursuant to section 46 or 47 of the 1992 Act; and

(c)

such other actuarial investigation in relation to the financial condition of an authorised society which carries on insurance business as may be required by the Commission in the exercise of its powers under Part V of the 1992 Act.

(2)

Where a society has entered into any contracts for the payment of property linked benefits, regulations 21 to 32 of these Regulations shall not apply, and where the requirements of section 49A(2) and (3) of the 1992 Act have been met in respect of liabilities under such contracts, the value of any linked asset by reference to the value of which those benefits are to be determined shall be the value of that asset as determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance business.

(3)

Any asset to which this Part of these Regulations applies (other than cash) for the valuation of which no provision is made in this Part of these Regulations shall be left out of account for the purposes specified in paragraph (1) above.

(4)

Where in accordance with this Part of these Regulations the value of any asset is to be not greater than any specified amount and, in all the circumstances of the case, it appears that the asset is of a lesser value than that amount, such lesser value shall be the value of the asset.

(5)

For the purposes of paragraph (4) above, in determining whether it appears that an asset shall be of a lesser value than a specified amount, regard shall be had to the underlying security and in, the case of bonds, debt securities and other money and capital market instruments, the credit rating of the issuer, including whether the issuer belongs to Zone A as defined in the Council Directive 89/647/EEC of 18th December 1989 on a solvency ratio for credit institutionsf1 and, where the issuer is an international organisation, whether it includes at least one EEA State among its members.

(6)

Notwithstanding paragraph (1) above (but subject to the conditions set out in paragraph (7) below) and in relation to an actuarial investigation of its long term business only, a society may elect to assign to any of its assets the value given to the asset in question in the books or other records of the society.

(7)

The conditions referred to in paragraph (6) above are—

(a)

that the election shall not enable the society to bring into account any asset for the valuation of which no provision is made in this Part of these Regulations;

(b)

that the value assigned to the aggregate of the assets shall not be higher than the aggregate of the value of those assets as determined in accordance with regulations 21 to 32 of these Regulations.

Annotations

Footnotes

f1

O.J. No. L386, 30.12.89, p.14.