Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 80

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 80
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ential regulation
of banks, insurers and some large investment firms (the Financial Policy Committee, a sub-committee of the Bank of England, is responsible
for macro-prudential regulation in the United Kingdom). The FCA is responsible for conduct of business regulation and market regulation
for all authorized firms, and the prudential regulation of firms not authorized by the PRA.

Each of the Lloyd’s
managing agents referred to above and AWAC Europe U.K. Branch is authorized and regulated by the PRA, as well as having its conduct of
business regulated by the FCA, and is, therefore, considered a dual-regulated firm. The PRA and the FCA have extensive powers to supervise
and intervene in the affairs of regulated firms, for example, if they consider it appropriate in order to protect policyholders against
the risk that the firm may be unable to meet its liabilities as they fall due, that the Threshold Conditions (as defined below) may not
be met, that the firm or its parent has failed to comply with obligations under the relevant legislation or rules, that the firm has
furnished them with misleading or inaccurate information or that there has been substantial departure from any proposal or forecast submitted
to the relevant regulator.

The PRA and the FCA also
have the power to take a range of disciplinary and enforcement actions in relation to a breach by a firm of FSMA or the rules made
under FSMA as set out in the PRA Rulebook and other guidance and supervisory statements that the PRA may publish from time to time (the
“PRA Rulebook”) and in the FCA Handbook of Rules and Guidance (the “FCA Handbook”), respectively.
Such disciplinary and enforcement actions may include private censure, public censure, restitution, fines or sanctions and the award
of compensation. The PRA (or, where relevant, the FCA) may also cancel or vary (including by imposing limitations on) a Part 4A
Permission (described in greater detail below) of a firm.

Lloyd’s of London

The Society of Lloyd’s
is itself authorized by the PRA and regulated by the PRA and the FCA, and its senior personnel are required to be approved by the regulators.
Lloyd’s regulated activities include arranging deals in contracts of insurance written at Lloyd’s (“the basic market
activity”), arranging deals in participations in Lloyd’s syndicates (“the secondary market activity”) and carrying
out any activity in connection with, or for