Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 83

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 83
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also for insurance distribution activities such as dealing in investments as agent, arranging, advising on investments, and assisting
in the administration and performance of contracts of insurance. Each of the above managing agents holds permission for managing the
underwriting capacity of a Lloyd’s syndicate and one or more of the insurance distribution activities.

At the point of authorization
(on the granting of Part 4A Permissions) and at all times thereafter, managing agents must meet specified threshold conditions
which are set out in Schedule 6 of FSMA (“Threshold Conditions”).

The PRA and the FCA each
have their own sets of Threshold Conditions and, as dual-regulated firms, the managing agents must comply with both. The Threshold Conditions
relate to matters including the adequacy of the firm’s financial and other resources and whether a firm is a fit and proper person
to conduct its regulated activities, having regard to all the circumstances (including whether the firm’s affairs are conducted
soundly and prudently).

When granted, a Part 4A
Permission will specify: (i) a description of the activities the managing agent can carry on, including any limitations on the scope
of the permission; (ii) the specified investments to which the permission relates; and (iii) requirements imposed in relation
to the permission to require the managing agent to take, or to refrain from taking, specified action. These requirements may relate to
a range of matters, including the scope of a managing agent’s business, capital, liquidity and interactions with affiliates. Once
authorized, in addition to continuing to meet the Threshold Conditions, managing agents must comply with the requirements of the PRA
Rulebook and the FCA Handbook that apply to them.

Additionally, a managing
agent needs the permission of Lloyd’s to manage a syndicate.

A managing agent must also
obtain prior approval from the PRA or the FCA (depending on the function in question) for any individual who carries on one or more specified
“controlled functions,” such as executive or non-executive directors and persons responsible for risk management, internal
audit or compliance. The controlled functions of managing agents specified by the PRA and the FCA are known as senior management functions
(“SMFs”). The relevant regulator will only approve an individual if it is satisfied that such individual is “fit
and proper” to perform the SMF in question, including by reference to the person’s honesty, integrity and reputation, competence
and capability for the roles that the person is to assume in