Glossary
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Term | Definition | Legal instruments |
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material transaction 01/01/2016 |
THIS DEFINITION ONLY APPLIES TO THE RUN-OFF OPERATIONS PART
means a transaction (when aggregated with any similar transactions) in which: (1) the price actually paid or received for the transfer of assets or liabilities or the performance of services; or (2) the price which would have been paid or received had that transaction been negotiated at arm's length between unconnected parties; exceeds: (a) in the case of a firm which carries on long-term insurance business, but not general insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding linked liabilities and net of reinsurance ceded; or (b) in the case of a firm which carries on general insurance business, but not long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; or (c) in the case of a firm which carries on both long-term insurance business and general insurance business: (i) where the transaction is in connection with the firm's long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding linked liabilities and net of reinsurance ceded; and (ii) in all other cases, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded. and (d) in the case of third country branch undertakings, a reference to the “firm’s liabilities” is to be interpreted as a reference only to the liabilities relevant to the operations effected by the third country branch. |
Instruments |