European Communities (Non-Life Insurance and Life Assurance) Framework (Amendment) Regulations, 1997
Statutory Instruments
Source: Statutory Instruments

num: 1
paragraphs: (1) These Regulations may be cited as the European Communities (Non-Life Insurance and Life Assurance) Framework (Amendment) Regulations, 1997.
(2) These Regulations shall come into operation on the 15th day of December, 1997.
num: 2
paragraphs: In these Regulations -
"the Non-Life Insurance Framework Regulations" means the European Communities (Non-Life Insurance) Framework Regulations, 1994 ( S.I. No. 359 of 1994 );
"the Life Assurance Framework Regulations" means the European Communities (Life Assurance) Framework Regulations, 1994 ( S.I. No. 360 of 1994 );
num: 3
paragraphs: The Non-Life Framework Regulations are hereby amended
( a ) in Article 2(1) by -
(i) the insertion after the definition "carrying on insurance business by way of services" of the following definitions:
" 'close links' means an arrangement whereby two or more natural or legal persons are united -
( a ) by participation or control, and
( b ) to one and the same person by a control relationship;
'control', in the case of close links, means the relationship between a parent undertaking and a subsidiary undertaking, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC 2 or a similar relationship between any natural or legal person and an undertaking; any subsidiary undertaking of a subsidiary undertaking shall also be considered a subsidiary of the parent undertaking which is at the head of those undertakings;",
2O.J. No. L 193 18.07.1983 as last amended by Directive 90/605/EEC (O.J. No. L317 16.11.1990)
(ii) 'the substitution for the definition of "the Directive" of the following definition:
" 'the Directive' means Council Directive 92/49/EEC of 18 June 1992 3, as amended by Directive 95/26/EC of the European Parliament and of the Council of 29 June 1995 1;", and
3 O.J. No. L228, 11.08.92, p1
(iii) the insertion after the definition of "non-life insurance" of the following definition:
"'participation', in the case of close links, means the ownership, direct or by way of control, of 20 per cent. or more of the voting rights or capital of an undertaking;".
( b ) in Article 6 by the insertion after paragraph (11) of the following paragraph;
"(12) The Minister shall not grant authorisation to an insurance undertaking where -
( a ) the existence of close links between the insurance undertaking and other natural or legal persons, or
( b ) the laws, regulations or administrative provisions of a State which is not a Member State of the European Union governing one or more natural or legal persons with which the insurance undertaking has close links or difficulties involved in their enforcement,
would prevent the effective exercise of his supervisory functions.";
( c ) in Article 10 by the insertion after paragraph (3) of the following paragraph:
"(4) In order to carry out his functions under paragraph (12) of Article 6 and paragraph (b) of Article 17 the Minister shall require an insurance undertaking to provide the information to establish whether there is the existence of close links between the insurance undertaking and another natural or legal person and the degree of such and to provide such other information as the Minister may, from time to time, consider necessary."; and
( d ) in Article 7(1) by the insertion after paragraph (a) of the following paragraph:
"(aa) its head office and registered office shall be in the State.".
num: 4
paragraphs: The Life insurance Framework Regulations are hereby amended -
( a ) in Article 2(1) by -
(i) the insertion after the definition of "claims payable" of the following definition:
" 'close links' means an arrangement whereby two or more natural or legal persons are linked -
( a ) by participation or control, and
( b ) to one and the same person by a control relationship;",
(ii) by the insertion after the definition of "contract of insurance" of the following definition:
'control', in the case of close links, means the relationship between a parent undertaking and a subsidiary undertaking, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC 2 or a similar relationship between any natural or legal person and an undertaking; any subsidiary undertaking of a subsidiary undertaking shall also be considered a subsidiary of the parent undertaking which is at the head of those undertakings;",
(iii) by the substitution for the definition of "the Directive" of the following definition:
" 'the Directive' means Council Directive 92/96/EEC of 10 November 1992 4, as amended by Directive 95/26/EC of the European Parliament and of the Council of 29 June 1995;", and
(iv) the insertion after the definition of "Minister" of the following definition:
"'participation', in the case of close links, means the ownership, direct or by way of control, of 20 per cent. or more of the voting rights or capital of an undertaking;".
( b ) in Article 6 by the insertion after paragraph (11) of the following paragraph:
"(12) The Minister shall not grant authorisation to an insurance undertaking where -
( a ) the existence of close links between the insurance undertaking and other natural or legal persons, or
( b ) the laws, regulations or administrative provisions of a State which is not a Member State of the European Union governing one or more natural or legal persons with which the insurance undertaking has close links, or difficulties involved in their enforcement,
would prevent the effective exercise of his supervisory functions.";
( c ) in Article 10 by the insertion after paragraph (5) of the following paragraph:
"(6) In order to carry out his functions under paragraph (12) of Article 6 and paragraph (b) of Article 37 the Minister shall require an insurance undertaking to provide the information to establish whether there is the existence of close links between the insurance undertaking and another natural or legal person and the degree of such and to provide such other information as the Minister may, from time to time, consider necessary."; and
( d ) in Article 7(1) by the insertion after paragraph (a) of the following paragraph:
"(aa) Its head office and registered office shall be in the State.".
num: 5
paragraphs: Section 35 of the Insurance Act, 1989 (No. 3 of 1989), is hereby amended in subsection (1) by the insertion -
( a ) in paragraph (d) after "auditors" of "or", and
( b ) after paragraph (d) of the following paragraph:
"(e) becomes aware of any facts or decisions which are likely to affect materially the insurer's ability to fulfil its obligations to policyholders or meet any of its material financial requirements under the Insurance Acts in the course of conducting an audit in an undertaking in a control relationship with the insurer, as defined in Article 1(1) and (2) of Directive 83/349/EC2.".
MARY HARNEY