Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 90

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 90
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 to calculate branch capital requirements and to hold local assets to cover them.

Additional proposed regulatory
developments that may impact Fairfax include:

| (ii) | a focus on the commercial insurance market.                                                   
 On July 29, 2024, the FCA issued a discussion paper (DP24/1: Regulation of Commercial         
 and Bespoke Insurance) which set out proposals focused on attempting to ensure an appropriate 
 balance between consumer protection and competitiveness in the commercial insurance market.   |

Other Relevant Issues for the Insurance Sector in the United Kingdom

Passporting

Firms authorized in a European
Economic Area (“EEA”) state to carry on activities regulated under one of the relevant directives emanating from the
European Union (the “Single Market directives”) are entitled to carry on those regulated activities in any other EEA
state without needing to become directly authorized by the regulator of the host EEA state. This is known as “passporting”
and can involve either the setting up of an establishment in the host EEA state or the provision of cross-border services. The Solvency
II Directive is, for example, a Single Market directive. Whilst the United Kingdom was part of the EEA, Brit Syndicates Limited had permission
from the PRA to exercise passporting rights out of the United Kingdom and into other EEA states.

The United Kingdom left
the European Union at 23:00 (Greenwich Mean Time) on January 31, 2020. Prior to this date, the European Union (Withdrawal Agreement)
Act 2020 (the “Withdrawal Act”) entered into law in the United Kingdom on January 23, 2020. The Withdrawal Act
provided for an “implementation period,” during which time existing arrangements between the United Kingdom and European
Union would continue to apply, until December 31, 2020 (and, during that period, U.K. firms were able to continue to benefit
from their passporting permissions). Following December 31, 2020, U.K. firms are no longer able to exercise passporting rights.
To enable clients with EEA business to continue to access the Lloyd’s market, Lloyd’s has established a subsidiary in Belgium,
Lloyd’s Insurance Company S.A. (“Lloyd’s Europe”), which is authorized by the National Bank of Belgium
(“NBB”), regulated by the NBB and the Financial Services and Markets Authority in Belgium and benefits from passporting
permissions in all EEA states. Lloyd’s Europe can accept