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Term Definition Legal instruments

small run-off firm

03/07/2017

means a firm:

(1) whose Part 4A permission for effecting contracts of insurance has been cancelled as at the date on which the firm becomes a small run-off firm;

(2) which has not effected any new contracts of insurance in the 12 months before the date on which the firm becomes a small run-off firm;

(3) which has not participated as a transferee in a transfer of insurance business under Part VII of FSMA in the 12 months before the date on which the firm becomes a small run-off firm; and

(4) the value of whose technical provisions is less than £25 million, as reported in each of the firm’s two most recent annual reports and accounts published before the date on which it becomes a small run-off firm.

A firm remains a small run-off firm unless, after the date on which it becomes a small run-off firm, it:

(1) has a Part 4A permission for effecting contracts of insurance;

(2) effects a new contract of insurance; or 

(3) participates as a transferee in a transfer of insurance business under Part VII of FSMA.