Financial Services and Markets Bill - continued        House of Lords
PART VII, CONTROL OF BUSINESS TRANSFERS - continued

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Appointment of actuary in relation to reduction of benefits.     110. - (1) This section applies if an order has been made under section 108(1).
 
      (2) The court making the order may, on the application of the Authority, appoint an independent actuary-
 
 
    (a) to investigate the business transferred under the scheme; and
 
    (b) to report to the Authority on any reduction in the benefits payable under policies entered into by the authorised person concerned that, in the opinion of the actuary, ought to be made.
Rights of certain policyholders.     111. - (1) This section applies in relation to an insurance business transfer scheme if-
 
 
    (a) the authorised person concerned is an authorised person other than an EEA firm qualifying for authorisation under Schedule 3;
 
    (b) the court has made an order under section 108 in relation to the scheme; and
 
    (c) an EEA State other than the United Kingdom is, as regards any policy included in the transfer which evidences a contract of insurance, the State of the commitment or the EEA State in which the risk is situated ("the EEA State concerned").
      (2) The court must direct that notice of the making of the order, or the execution of any instrument, giving effect to the transfer must be published by the transferee in the EEA State concerned.
 
      (3) A notice under subsection (2) must specify such period as the court may direct as the period during which the policyholder may exercise any right which he has to cancel the policy.
 
      (4) The order or instrument mentioned in subsection (2) does not bind the policyholder if-
 
 
    (a) the notice required under that subsection is not published; or
 
    (b) the policyholder cancels the policy during the period specified in the notice given under that subsection.
      (5) The law of the EEA State concerned governs-
 
 
    (a) whether the policyholder has a right to cancel the policy; and
 
    (b) the conditions, if any, subject to which any such right may be exercised.
      (6) Paragraph 6 of Schedule 12 applies for the purposes of this section as it applies for the purposes of that Schedule.
 
 
Business transfers outside the United Kingdom
Certificates for purposes of insurance business transfers overseas.     112. Part III of Schedule 12 makes provision about certificates which the Authority may issue in relation to insurance business transfers taking place outside the United Kingdom.
 
Effect of insurance business transfers authorised in other EEA States.     113. - (1) This section applies if, as a result of an authorised transfer, an EEA firm falling within paragraph 5(d) of Schedule 3 transfers to another body all its rights and obligations under any UK policies.
 
      (2) This section also applies if, as a result of an authorised transfer, a company authorised in an EEA State other than the United Kingdom under Article 27 of the first life insurance directive, or Article 23 of the first non-life insurance directive, transfers to another body all its rights and obligations under any UK policies.
 
      (3) If appropriate notice of the execution of an instrument giving effect to the transfer is published, the instrument has the effect in law-
 
 
    (a) of transferring to the transferee all the transferor's rights and obligations under the UK policies to which the instrument applies, and
 
    (b) if the instrument so provides, of securing the continuation by or against the transferee of any legal proceedings by or against the transferor which relate to those rights and obligations.
      (4) No agreement or consent is required before subsection (3) has the effects mentioned.
 
      (5) "Authorised transfer" means-
 
 
    (a) in subsection (1), a transfer authorised in the home State of the EEA firm in accordance with-
 
      (i) Article 11 of the third life directive; or
 
      (ii) Article 12 of the third non-life directive; and
 
    (b) in subsection (2), a transfer authorised in an EEA State other than the United Kingdom in accordance with-
 
      (i) Article 31a of the first life directive; or
 
      (ii) Article 28a of the first non-life directive.
      (6) "UK policy" means a policy evidencing a contract of insurance (other than a contract of reinsurance) to which the applicable law is the law of any part of the United Kingdom.
 
      (7) "Appropriate notice" means-
 
 
    (a) if the UK policy evidences a contract of insurance in relation to which an EEA State other than the United Kingdom is the State of the commitment, notice given in accordance with the law of that State;
 
    (b) if the UK policy evidences a contract of insurance where the risk is situated in an EEA State other than the United Kingdom, notice given in accordance with the law of that EEA State;
 
    (c) in any other case, notice given in accordance with the applicable law.
      (8) Paragraph 6 of Schedule 12 applies for the purposes of this section as it applies for the purposes of that Schedule.
 
 
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