Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 88

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 88
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 For these purposes, financial crime includes any offence involving fraud or dishonesty, misconduct
in, or misuse of information relating to, a financial market or handling the proceeds of crime, as well as bribery and corruption offences.
One of the FCA’s statutory objectives is to protect and enhance the integrity of the U.K. financial system which includes,
among other things, reducing the opportunity for the U.K. financial system to be used for purposes connected with financial crime.

The PRA and the FCA have
the power, in certain circumstances, to give directions to certain “qualifying parent undertakings” of U.K. authorized
firms even where those parent undertakings are not themselves regulated, provided that the parent undertaking is incorporated in the
United Kingdom or has a place of business in the United Kingdom. This power of direction allows the PRA or the FCA to direct the parent
to take or refrain from taking specified action or to remedy past actions in prescribed circumstances.

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Under section 178 of FSMA,
if a person intends to acquire or increase “control” over a PRA-authorized firm (including a Lloyd’s managing agent),
it must first notify and get prior approval from the PRA before becoming a “controller” or increasing its level of control
above certain thresholds. A person must also notify the PRA when the transaction that results in this acquisition or increase of control
takes place.

A proposed “controller”
for the purposes of the change of control regime is any natural or legal person (whether alone or “acting in concert” with
other persons) who decides to acquire or increase, directly or indirectly, his, her or its control over a U.K. authorized firm.

“Control” over
a PRA authorized firm is acquired if the acquirer:

| · | holds                                                                                     
 10% or more of the shares or voting rights in that company or in its (direct or indirect) 
 parent undertaking; or                                                                    |

| · | is                                                                                                 
 able to exercise significant influence over the management of the firm by virtue of the acquirer’s 
 shares or voting power in the company or its (direct or indirect) parent undertaking.              |

Increases of control of
a PRA authorized firm require the consent of the PRA where they reach the thresholds of 20%, 30% and 50% of the shares or voting power
in the firm or its parent. Reducing or proposing to reduce control below the relevant threshold also gives rise to an obligation