Part 7 transfers
Insurance business transfer schemes in the UK are permitted by Part VII of the Financial Services and Markets Act 2000 (the FSMA). Transfers effected in the UK are automatically given effect in other European states who are signatories to the European Free Trade Agreement (“EFTA”).
A Part VII transfer is a novation of a set of contracts and an associated set of assets from one entity to another.
The mechanism has certain advantages over solvent schemes of arrangement in achieving finality for the transferor.
The Part VII transfer has evolved into an important mechanism available to insurers to rationalise portfolio and corporate structures and to assist in the closure of businesses in run-off.
As an independent actuarial consulting business James, Brennan & Associates has acted as Independent Expert in more than 20 Part VII transactions and provided advise on many more.
Please feel free to contact us for a consultation.
Articles and related links:
- General article on Part VIIs
- Basic Procedures on Part VIIs
- Considerations
- Link to articles in RunOffBusiness and restructuing
London: