Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020

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Amendment of Regulations of 2018

85. The Regulations of 2018 are amended by the insertion of the following regulations after Regulation 3:

“Conditions for application of Regulation 3B

3A. (1) This Regulation applies to a person who satisfies the following conditions:

(a) the person was, immediately before the relevant date, registered in the United Kingdom or Gibraltar under the law of the United Kingdom or Gibraltar, as the case may be, giving effect to the Directive of 2016;

(b) the person has, before the relevant date—

(i) established a branch and commenced insurance distribution business in the State, or

(ii) commenced insurance distribution business in the State under the freedom to provide services,

in accordance with Chapter III of Title I of the Directive of 2016;

(c) the person does not, after the relevant date, carry on any insurance distribution business in the State, other than the administration of insurance contracts entered into on or before that date;

(d) the person complies with the general good rules.

(2) This paragraph applies where the Bank has decided it is satisfied that a person—

(a) satisfying the condition described in subparagraph (a) of paragraph (1), and

(b) satisfying either of the conditions described in subparagraph (b) of that paragraph,

has, after the relevant date—

(i) carried on any insurance distribution business in the State, other than the administration of insurance contracts entered into on or before that date,

(ii) permanently ceased to carry on insurance distribution business in the State, having completed the administration of insurance contracts entered into on or before that date,

(iii) failed to make sufficient progress towards permanently ceasing to carry on insurance distribution business in the State by the date that is 15 years from the relevant date, or

(iv) failed to comply with the general good rules.

(3) Where paragraph (2) applies, the Bank may issue a notification (in this Regulation referred to as a ‘withdrawal notification’) to the person concerned stating that it is satisfied that subparagraph (i), (ii), (iii) or (iv), as the case may be, of that paragraph applies to that person.

(4) A decision of the Bank under paragraph (2) shall be an appealable decision for the purpose of Part VIIA of the Central Bank Act 1942 .

(5) A person to whom this Regulation applies shall, not later than 3 months from the relevant date, notify the Bank of the application of this Regulation to that person.

(6) This Regulation shall cease to apply to a person on the date that is the earlier of—

(a) the date on which the Bank issues a withdrawal notification to the person, and

(b) the date that is 15 years from the relevant date.

(7) In this Regulation and Regulation 3B, ‘relevant date’ shall—

(a) subject to subparagraph (b), be construed as a reference to the date on which Part 10 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 comes into operation, or

(b) where a time on a particular date is appointed as the time (on that date) at which that Part shall come into operation, be deemed to be a reference to that time.

Regulations applicable to a person to whom Regulation 3A applies

3B. (1) These Regulations shall, subject to the modifications specified in paragraph (2), apply to a person to whom Regulation 3A applies as if the person were granted a registration by the Bank subject to the condition that the person shall not carry on any insurance distribution business in the State other than the administration of insurance contracts entered into on or before the relevant date.

(2) The modifications referred to in paragraph (1) are as follows:

(a) the following provisions shall not apply:

(i) Regulations 8 to 12;

(ii) Regulations 14 to 19;

(iii) Regulations 25 to 28;

(iv) Regulation 48;

(b) the Bank may, in writing—

(i) impose, on a person to whom these Regulations apply in accordance with paragraph (1), conditions in relation to the operation or termination, or both the operation and termination, of that person’s insurance distribution business, and

(ii) vary or revoke such conditions.

(3) A decision of the Bank to impose, vary or revoke a condition pursuant to paragraph (2)(b) shall be an appealable decision for the purpose of Part VIIA of the Central Bank Act 1942 .”.