Schedule 6, Part 1D, paragraph 4A

If the person concerned (“C”) carries on, or is seeking to carry on, regulated activities which consist of or include a PRA-regulated activity relating to the effecting or carrying out of contracts of insurance, the threshold conditions which are relevant to the discharge by the PRA of its functions in relation to C are the conditions set out in paragraphs 4B to 4F. If the person concerned (“C”) carries on, or is seeking to carry on, regulated activities which consist of or include a PRA-regulated activity relating to managing the underwriting capacity of a Lloyd’s syndicate as a managing agent at Lloyd’s, the conditions which are relevant to the discharge by the PRA of its functions in relation to C are the conditions set out in paragraphs 4C to 4F except for sub-paragraphs (5)(d) and (5)(e) of paragraph 4D which are not relevant for that purpose. If the person concerned (“C”) carries on, or is seeking to carry on, regulated activities which consist of or include a PRA-regulated activity relating to the arranging, by the Society, of deals in contracts of insurance written at Lloyd’s, the conditions which are relevant to the discharge by the PRA of its functions in relation to C are the conditions set out in paragraphs 4C to 4F, subject to sub-paragraph (4). Paragraph 4D has effect in relation to persons of the kind specified by sub-paragraph (3) as if— for paragraph (d) and (e) of sub-paragraph (5) there were substituted— the effect that the carrying on of business by C might be expected to have on the stability of the UK financial system or on those who are or may become policyholders of members of C; the effect that the failure of C might be expected to have on the stability of the UK financial system or on those who are or may become policyholders of members of C; sub-paragraph (6) were omitted. If the person concerned (“C”) carries on, or is seeking to carry on, regulated activities which consist of or include a PRA-regulated activity relating to an assumption of risk falling within article 13A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, the threshold conditions which are relevant to the discharge by the PRA of its functions in relation to C are the conditions set out in paragraphs 4B to 4F, subject to sub-paragraph (6). Paragraphs 4B to 4F have effect in relation to persons of the kind specified by sub-paragraph (5) as if— the persons are undertakings, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assume risks from insurance or reinsurance undertakings and which fully fund their exposure to such risks through the proceeds of a debt issuance or any other financing mechanism where the repayment rights of the providers of such debt or financing mechanism are subordinated to the reinsurance obligations of such an undertaking; the persons are not insurance undertakings; references to contracts of insurance are references to contracts for the assumption of risk; and references to C’s policyholders are references to undertakings from whom C assumes a risk. In paragraph (6)(a), references to undertakings which assume risks from insurance or reinsurance undertakings include references to undertakings which assume risks from overseas insurance undertakings or overseas reinsurance undertakings and Gibraltar insurance undertakings or Gibraltar reinsurance undertakings .... In this paragraph— “Gibraltar insurance undertaking” means an undertaking which— has its head office in Gibraltar; and is authorised by the Gibraltar Financial Services Commission to effect or carry out contracts of insurance (other than contracts of reinsurance) under paragraph 24 of Schedule 2 to the Financial Services Act 2019 of Gibraltar; “Gibraltar reinsurance undertaking” means an undertaking which— has its head office in Gibraltar; and is authorised by the Gibraltar Financial Services Commission to effect or carry out contracts of insurance that are limited to reinsurance contracts under paragraph 24 of Schedule 2 to the Financial Services Act 2019 of Gibraltar; “overseas insurance undertaking” means a person who— is established in a country or territory other than— the United Kingdom, or Gibraltar; is not an authorised person; is not an authorised person for the purposes of the Financial Services Act 2019 of Gibraltar; and effects or carries out contracts of insurance as principal; “overseas reinsurance undertaking” means a person who— is established in a country or territory other than— the United Kingdom, or Gibraltar; is not an authorised person; is not an authorised person for the purposes of the Financial Services Act 2019 of Gibraltar; and effects or carries out contracts of insurance that are limited to reinsurance contracts as principal.

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Source: legislation.gov.uk · retrieved 2026-09-04