Company: FRFXF
Filing Date: 2025-10-01
Form Type: F-10
Source: 0001104659-25-095645
Chunk: 99

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-10-01
Form: F-10
Chunk 99
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 Lloyd’s applies the same tests in relation to control as are set out in FSMA and, in practice, where the application relates to a managing agent, coordinates its approval process with that of the PRA.

The same approval process applies in respect of FCA authorized firms. However, for FCA authorized firms that are non-Directive firms (e.g., non-MiFID firms, general insurance intermediaries, full permission consumer credit firms and home finance providers), the FSMA (Controllers) (Exemption) Order 2009 provides that there is only one threshold and control band of 20% or more.

Financial Services and Markets Act 2023

The Financial Services and Markets Act 2023 (the “

#### 2023 Act
”) received Royal Assent on June 29, 2023.

The 2023 Act permits the revocation of all retained European Union law relating to financial services, including the Solvency II Directive and the Insurance Distribution Directive, although such revocation will only take effect once regulators have drafted and consulted on replacement rules and are ready to enforce them.

Other changes implemented by the 2023 Act include:

(i)

a new statutory objective for the PRA and FCA requiring them to act in a way which facilitates the long-term growth and international competitiveness of the U.K. economy; and

(ii)

a requirement for the regulators to consider the sustainable growth in the U.K. economy in the medium or long term in a manner consistent with the United Kingdom’s net zero emissions commitments.

In parallel with the 2023 Act, HM Treasury and the PRA consulted on proposed reforms to the Solvency II Directive regime in April 2022, June 2023 and September 2023 and such reforms have now been fully implemented. These reforms include a reduction in the risk margin required to be held by insurers and a reduction in the reporting and administrative burdens to which U.K. insurers were previously subject. Of particular note to Fairfax’s business is the removal of the requirements for U.K. branches of foreign insurers (such as AWAC Europe U.K. Branch) to calculate branch capital requirements and to hold local assets to cover them.

Other changes implemented by the 2023 Act include:

(i)

changes to operational resilience requirements. Operational resilience is a key focus area for regulators in the United Kingdom and in Europe. In the United Kingdom, the FCA and the PRA published final rules and policy on operational resilience in 2022 requiring firms to perform mapping and testing in relation