Paragraph 1

United Kingdom

(1)

A UK insurer shall not carry on direct insurance business of a class or part of a class through a branch in a member State other than the United Kingdom unless—

(a)

the insurer is authorised under section 3 or 4 of this Act to carry on insurance business of that class or part of a class or is a member of Lloyd’s; and

(b)

the requirements of this paragraph have been complied with in respect of that branch.

(2)

The requirements of this paragraph are—

(a)

that the insurer has given to the F1Treasury a notice containing the requisite EC details and, in the case of a company, the requisite UK details;

(b)

that the TreasuryF2have given to the supervisory authority of the member State in which the branch is to be established (“the member State of the branch”)—

(i)

a notice which contains the requisite EC details; and

(ii)

a certificate in accordance with sub-paragraph (3) below; and

(c)

that either—

(i)

that authority has informed the Treasury of the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or

(ii)

the period of two months beginning with the day on which the Treasury gave that authority the certificate mentioned in paragraph (b) above has elapsed.

(3)

A certificate is in accordance with this sub-paragraph if it—

(a)

attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—

(i)

Articles 16 and 17 of the first general insurance Directive, and

(ii)

Articles 18, 19 and 20 of the first long term insurance Directive; and

(b)

indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.

(4)

The Treasury shall, within the period of three months beginning with the date onwhich the insurer’s notice was received—

(a)

give the notice and certificate referred to in sub-paragraph (2)(b) above; or

(b)

refuse to give either or both of those documents.

(5)

The Treasury shall, within the period of three months referred to in sub-paragraph(4) above, notify the insurer—

(a)

that F3they have given the notice and certificate referred to in sub-paragraph (2)(b) above, stating the date on which F4they did so; or

(b)

that they have refused to give either or both of those documents, stating the reasons for the refusal.

(6)

In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the business to be carried on through the branch, it appears to F5them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

(7)

Where the supervisory authority of the member State of the branch has informed the Treasury as mentioned in sub-paragraph (2)(c)(i) above, F6the Treasuryshall forward the information to the insurer.