Paragraph 6

United Kingdom

(1)

A UK insurer shall not change the requisite details of the provision of insurance in a member State other than the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2)

The requirements of this paragraph are—

(a)

that the insurer has given a notice to the F1Treasury stating the details of the proposed change;

(b)

that the TreasuryF2have sent to the supervisory authority in the member State in which the insurance is provided a notice in accordance with sub-paragraph (4)(a) below.

(3)

In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable give a notice to the Treasury stating the details of the change.

(4)

The Treasury shall, as soon as practicable after receiving a notice under sub-paragraph (2)(a) above either—

(a)

give notice to the supervisory authority in the member State in which the insurance is provided informing it of the proposed change; or

(b)

refuse to give such notice.

(5)

The Treasury shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—

(a)

that F3they havegiven the notice referred to in that sub-paragraph, stating the date on which they did so; or

(b)

that F4they have refused to give the notice, 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 (4)(a) above unless, having regard to the proposed change, 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.