Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 89

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 89
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 to notify
the PRA.

Breach of the notification
and approval regime is a criminal offence.

The approval of Lloyd’s
is also required in relation to the change of control of a Lloyd’s managing agent or member. Broadly, 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.

The Financial Services and
Markets Act 2023 (the “2023 Act”) received Royal Assent on June 29, 2023 (although certain provisions have yet
to come into force).

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.                                    |

| - 52 - |

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)