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SCHEDULE 6
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QUALIFYING CONDITIONS |
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PART I |
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SECTION 36 AUTHORISATION |
| | 1. In relation to an application for permission under Part IV or to authorisation which results from a Part IV permission having been given, the qualifying conditions are those set out in paragraphs 2 to 6.
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Legal status |
| | 2. - (1) If the person concerned appears to the Authority to be seeking to carry on, or to be carrying on, a regulated activity relating to general or long-term insurance business, it must be a body corporate or a member of Lloyd's.
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(2) If the person concerned appears to the Authority to be seeking to carry on, or to be carrying on, a regulated activity constituting deposit-taking, it must be-
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Location of offices |
| | 3. - (1) If the person concerned is a body corporate constituted under the law of any part of the United Kingdom, it must have both its head office and its registered office in the United Kingdom.
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(2) If the person concerned is a body corporate constituted under the law of an EEA State (other than the United Kingdom), it must have its head office and its registered office in the same State.
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(3) If the person concerned-
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(a) is constituted under the law of a country or territory which is not an EEA State, and |
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(b) has a registered office, |
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it must have its head office in the same country or territory as its registered office.
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(4) In sub-paragraph (3) "registered office" includes its equivalent in the law under which the person concerned is constituted.
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(5) If none of sub-paragraphs (1) to (3) apply to the person concerned, it must-
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(a) have its head office in the United Kingdom; and |
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(b) carry on business in the United Kingdom. |
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Close links |
| | 4. - (1) If the person concerned ("A") has close links with another person ("CL") the Authority must be satisfied-
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(a) that those links are not likely to prevent the Authority's effective supervision of A; and |
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(b) if it appears to the Authority that CL is subject to the laws, regulations or administrative provisions of a territory which is not an EEA State ("the foreign provisions"), that neither the foreign provisions, nor any deficiency in their enforcement, would prevent the Authority's effective supervision of A. |
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(2) A has close links with CL if-
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(a) CL is a parent undertaking of A; |
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(b) CL is a subsidiary undertaking of A; |
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(c) CL is a parent undertaking of a subsidiary undertaking of A; |
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(d) CL is a subsidiary undertaking of a parent undertaking of A; |
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(e) CL owns or controls 20% or more of the voting rights or capital of A; or |
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(f) A owns or controls 20% or more of the voting rights or capital of CL. |
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(3) "Subsidiary undertaking" includes all the instances mentioned in Article 1(1) and (2) of the Seventh Company Law Directive in which an entity may be a subsidiary of an undertaking.
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Adequate resources |
| | 5. - (1) The resources of the person concerned must, in the opinion of the Authority, be adequate in relation to the regulated activities that he seeks to carry on, or carries on.
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(2) A person's resources may be taken to include-
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(a) the provision he makes in respect of liabilities (including contingent and future liabilities); and |
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(b) the means by which he manages the incidence of risk in connection with his business. |
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Suitability |
| | 6. The person concerned must satisfy the Authority that he is a fit and proper person having regard to all the circumstances, including-
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(a) his connection with any person; |
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(b) the nature of any regulated activity that he carries on or seeks to carry on; and |
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(c) the need to ensure that his affairs are conducted soundly and prudently. |
