Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 90

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 90
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EA 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 risks and issue policies via Lloyd’s Europe registered brokers,
service companies and coverholders. All Lloyd’s Europe policies are then 100% reinsured back to Lloyd’s syndicates (each
risk bound by Lloyd’s Europe is allocated to a relevant syndicate), meaning that clients will benefit from Lloyd’s chain
of security (as described above). This structure enables the members of Syndicate 2987, Syndicate 2988, Syndicate 1218 and Syndicate
2232 to continue to have an interest in EEA business (albeit as reinsurers rather than direct insurers). For completeness, we note that
all of Lloyd’s historic general insurance EEA business was transferred from Lloyd’s to Lloyd’s Europe with effect from
December 30, 2020 pursuant to Part VII of FSMA (including any EEA business of the members of Syndicate 2987, Syndicate 2988,
Syndicate 1218 and Syndicate 2232 – such business was subsequently 100% reinsured by the members of the relevant syndicate).

With regard to EEA firms
(such as AWAC Europe U.K. Branch) carrying on business in the United Kingdom, HM Treasury legislated for a temporary permissions regime
(“TPR”) that took effect from the end of the implementation period referred to above. The aim of the TPR was to allow
firms that wished to continue carrying on business in the United Kingdom in the longer term to operate in the United Kingdom for a limited
period after the passporting regime ended while they sought full authorization from U.K. regulators. Under the TPR, a firm that
was previously authorized to carry on regulated activities in the United Kingdom on a freedom of establishment or freedom of services
basis was able to obtain a deemed permission to carry on those activities for a maximum of three years from the end of the implementation
period, subject to HM Treasury’s power to extend the duration of the regime by increments of 12 months. AWAC Europe U.K. Branch
previously benefited from the TPR but exited the TPR, on July 13,