Regulation 22 Provisions supplemental to regulations 19 to 21

(1)

Subject to the provisions of this regulation, for the purposes of regulations 19(1)(b) and (2), 20(1)(b) and 21(1)(b) and (2) above, a body corporate and another person are connected with each other if—

(a)

the other person is—

(i)

a subsidiary undertaking of the body corporate;

(ii)

a parent undertaking of the body corporate; or

(iii)

a subsidiary undertaking of the parent undertaking of the body corporate; or

(b)

one of them is controlled by the other or both are controlled by the same person,

but a body corporate shall not be taken to be connected with another person if the company furnishing the statement does not know and could not upon reasonable enquiry be expected to find that it is so connected with the other person.

(2)

Except as provided in paragraph (3) below, for the purposes of paragraph (1)(b) above, a person shall be taken to control a body corporate if he is a person—

(a)

in accordance with whose directions or instructions the directors of the body corporate or of a body corporate of which it is a subsidiary are accustomed to act; or

(b)

who, either alone or with any associate or associates, is entitled to exercise, or control the exercise of, 15 per cent. or more of the voting power at any general meeting of the body corporate or of a body corporate of which it is a subsidiary.

(3)

In relation to a company—

(a)

making a statement pursuant to regulation 19 or 20 above, a reinsurer shall not be taken by virtue of paragraph (2) above to be connected with another reinsurer; or

(b)

making a statement pursuant to regulation 21 above, a cedant shall not be taken by virtue of paragraph (2) above to be connected with another cedant,

for the purposes of paragraph (2) of the said regulations 19, 20 or 21, as the case may be, unless it is also connected by virtue of paragraph (1) above with the company making the statement.

(4)

In regulations 19, 20 and 21 above and this regulation—

(a)

“full name” means—

(i)

in the case of a body corporate, its corporate name, and

(ii)

in the case of an individual or any unincorporated body, the name under which the individual or body lawfully carries on business; and

(b)

“associate” shall be construed in accordance with section 96C(4) of the Act^f1 as it has effect for the purpose of determining for the purposes of the Act whether any person is a controller of an insurance company other than a UK company.

(5)

The following provisions of Schedule 1 below shall apply for the purposes of regulations 19, 20 and 21 above—

(a)

paragraphs 4 and 5 (which relate to currencies other than sterling);

(b)

sub-paragraphs (1) and (2) of paragraph 8 (which, among other things, relate to amounts due to the company); and

(c)

paragraph 9 (which provides for amounts to be shown to the nearer £1,000).

(6)

Regulations 19(2), 20(1)(a) to (c) and 21 above shall apply in relation to the members of Lloyd’s taken together as they apply in relation to an insurance company to which Part II of the Act applies and in relation to the members of Lloyd’s paragraphs (1) to (4) of this regulation shall not apply.

Annotations

Footnotes

f1: Section 96C was inserted by S.I. 1994/1696, reg. 52.