# The Insurance Companies Regulations 1994, Regulation 38: Intermediaries: connected persons


(1) For the purposes of regulation 39 below a person is connected with an insurance company if—
(a) that person, or any partner, director, controller or manager of that person, is a partner, director, controller or manager of the insurance company or of any controller thereof;
(b) the insurance company, or any partner, director, controller or manager of the insurance company, is a partner, director, controller or manager of that person or of any controller thereof;
(c) that person or any controller thereof has an interest in 10 per cent. or more of the shares of the insurance company or of any controller thereof;
(d) the insurance company or any controller thereof has an interest in 10 per cent. or more of the shares of that person or of any controller thereof;
(e) that person, under any contract, not being a contract of employment, or under any other arrangement (whether legally enforceable or not) with the insurance company or with any associated company, undertakes not to perform any services relating to any class or part of a class of insurance business for any insurance company other than the insurance company and, where the undertaking also relates to any associated company, the associated company:Provided that an individual who gives an undertaking of the kind referred to above to any registered society shall not, by virtue of such undertaking, be a person connected with the society or with any company which is, within the meaning of section 736(2) Companies Act 1985 or Article 4(5)(b) of the Companies (Northern Ireland) Order 1986, a wholly owned subsidiary of the society.
(2) For the purposes of paragraph (1)(c) and (d) above, a person shall be treated as having an interest in shares of a company if, by virtue of Part I of Schedule 13 to the Companies Act 1985 (other than paragraph (4)(b)), he would be so treated for the purposes of sections 324 to 328 of that Act.
(3) A person who issues an invitation of the kind mentioned in regulation 39(1) below in respect of a contract of insurance which will be underwritten at Lloyd’s shall, in respect of that contract of insurance, be connected with the insurance company to which that contract relates if that person or any partner, director, controller or manager of that person will take a share in the contract as a member of Lloyd's.
(4) In this regulation—
“associated company”, in relation to a body corporate, means a subsidiary or holding company or subsidiary of the holding company of that body;
“controller”, in relation to a body corporate which is not an insurance company, means a person who is or would be, if he were a company, a holding company of that body;
“manager”, in relation to a body corporate which is not an insurance company, means a person who directly or indirectly takes part in or is concerned in the management of the affairs of that body.

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Source: https://www.legislation.gov.uk/uksi/1994/1516/regulation/38 (the official version)
Page: https://openlegislation.uk/insurance-companies-regulations-1994/regulation-38
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.