{
  "url": "https://openlegislation.uk/insurance-companies-amendment-regulations-1996/regulation-14",
  "json_url": "https://openlegislation.uk/insurance-companies-amendment-regulations-1996/regulation-14.json",
  "legislation": "uksi/1996/942",
  "legislation_title": "The Insurance Companies (Amendment) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/insurance-companies-amendment-regulations-1996",
  "path": "regulation/14",
  "kind": "regulation",
  "number": "14",
  "heading": "Schedule 12",
  "text": "(1) Schedule 12 of the 1994 Regulations shall be amended as follows.\n(2) For the definition of “index linked liabilities” in paragraph 2 of Part I, substitute\n““index linked liabilities” means insurance liabilities in respect of index linked benefits,.”\n(3) In the definition of “long term business amount” in paragraph 2 of Part I, after the words “insurance liabilities”, insert “in respect of long-term business”.\n(4) For the definition of “property linked liabilities” in paragraph 2 of Part I, substitute\n““property linked liabilities” means insurance liabilities in respect of property linked benefits;.”\n(5) In the definition of “readily realisable” in paragraph 2 of Part I, for the words “not more” substitute “an amount equal to or greater”.\n(6) In paragraph 4(b) of Part I, for the words “in sub-paragraph (d)” substitute “in sub-paragraph (e)”.\n(7) In paragraph 4(c)(ii) of Part I after the word “amount”, insert “or such lower amount as the company may decide”.\n(8) In paragraph 7(c) of Part I, after the word“counterparty”, insert “and it is prudent to assume that such disposal will take place”.\n(9) In paragraph 9(c) of Part I, after the word“counterparty”, insert “and it is prudent to assume that such disposal will take place”.\n(10) After paragraph 9 of Part I, insert—\n“Adjustments in respect of initial margins\n9A The figure arrived at under paragraphs 5 to 9 above in respect of assets of each description shall be increased by an amount representing the value of any assets of that description which have been transferred by the company by way of initial margin.”.\n(11) In paragraph 10 of Part I, for the words “paragraphs 6 to 9 above”, substitute “paragraphs 5 to 9A above”.\n(12) In paragraph 13 of Part I, for the words “paragraph (c) of regulation 52” substitute “regulation 52(1)(c)”.\n(13) For paragraph 14 of Part I, substitute—\n“14 Where an insurance company has rights in respect of an obligation to be fulfilled by a counterparty and—\n(a) the obligation is a secured obligation which—\n(i) is secured by cash deposited with, or a letter of credit established with, or securities issued by, or a guarantee provided by, an approved credit institution or an approved financial institution; and\n(ii) is due to be fulfilled within 12 months of the relevant date; or\n(b) the obligation is a secured obligation which is secured by listed securities which are readily realisable or by approved securities which in either case—\n(i) have been deposited with an approved credit institution, an approved financial institution or an approved investment firm; and\n(ii) are beneficially owned by the counterparty but will not be available for the benefit of creditors generally in the event of the winding-up of the counterparty,\nthe aggregation required by paragraph 13 above need not include the value of such rights.”.\n(14) In paragraph 16 of Part I, after the words “counterparty exposure”, in the third line, insert “limit” and for the words from “it shall only be required” to the end of the paragraph substitute—\n“it shall make the deduction required under regulation 57(1)(b) above only in respect of the circumstances leading to the greatest excess exposure.”.\n(15) For paragraph 17 of Part I, substitute—\n“17 Where there is exposure to a counterparty of the type mentioned in paragraph 4(c)(ii) above, 40 per cent. of the business amount shall be deducted from the aggregate of such exposures. The amount so arrived at shall be the excess concentration with a number of counterparties. Where this amount is negative it shall be taken to be zero. For the purposes of this paragraph—\n(a) exposure to a counterparty shall be taken into account only up to the level of the permitted counterparty exposure limit for that counterparty; and\n(b) exposure to a counterparty shall not be taken into account if it does not exceed 5 per cent. of the business amount; and\n(b) exposure to a counterparty shall not be taken into account if the corresponding permitted counterparty exposure limit does not exceed 5 per cent. of the business amount.”.\n(16) In paragraph 1 of Part II, after the words “number of pieces of land”, insert “(or an interest in such pieces of land)”.\n(17) After paragraph 1 of Part II, insert—\n“1A A reversionary interest or a remainder not falling within paragraph 1 above.\n1%.”\n(18) In paragraph 11 of Part II, after the words “secured debt securities”, insert “, debt securities (other than hybrid securities) issued by a regulated institution” and for the words “paragraph (c) of regulation 52”, substitute“regulation 52 (l)(c)”.\n(19) In paragraph 12 of Part II, for the words “the descriptions in paragraph 11 above”, substitute “any of the descriptions in paragraphs 1A and 11 above”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/942/regulation/14",
    "retrieved_at": "2026-10-29T12:46:27.554569+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}