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Term Definition Legal instruments

material transaction

31/12/2020

THIS DEFINITION ONLY APPLIES TO THE INSURANCE – SUPERVISED RUN OFF PART

This defined term is effective from 23:00 on 31/12/2020.

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 long-term 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 long-term 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) a reference to the “firm's liabilities” is to be interpreted as a reference only to the liabilities relevant to the operations permitted under regulation 28 or 34 of Part 6 of the EEA Passport Rights (Amendment etc. and Transitional Provisions (EU Exit) Regulations 2018.