Insurance Special Purpose Vehicles

1.1

Unless otherwise stated, this Part applies to a UK ISPV (including a UK ISPV that is a non-Solvency 2 transformer vehicle).

1.2

In this Part, the following definitions shall apply:

assumption of risk notification

means a notification by a UK protected cell company of the assumption of a risk required under regulation 60 of the Risk Transformation Regulations.

group of cells

has the meaning given in regulation 3 of the Risk Transformation Regulations.

group of cells notification form

means the form in rule 6.2.

inter-cell arrangement notification

means a notification by a UK protected cell company of:

1. (1) the creation of an arrangement within a group of cells, as required by regulation 69 of the Risk Transformation Regulations; or
2. (2) the amendment or cancellation of an arrangement within a group of cells, as required by regulation 70 of the Risk Transformation Regulations.

MISPV new risk assumption notification form

means the form in 6.1.

multi-arrangement special purpose vehicle

has the meaning given in Article 2 of the Commission Implementing Regulation (EU) 2015/462.

non-Solvency 2 transformer vehicle

has the meaning given in regulation 9(1) of the Risk Transformation Regulations.

Risk Transformation Regulations

means the Risk Transformation Regulations 2017 (2017/1212).

UK multi-arrangement ISPV

means:

1. (1) a UK ISPV that is a multi-arrangement special purpose vehicle; and
2. (2) a UK ISPV that is a non-Solvency 2 transformer vehicle which assumes risks under more than one separate contractual arrangement from one or more undertaking(s).

UK protected cell company

means a protected cell company formed under the Risk Transformation Regulations.

2.1

A UK ISPV must ensure that at all times:

1. (1) it is fully funded; and
2. (2) if it is a UK multi-arrangement ISPV, each group of cells (if any) is fully funded.

3.1

[Deleted.]

3.1A

A UK ISPV that is a non-Solvency 2 transformer vehicle must apply any relevant provision of the Solvency II Regulations as at 1 January 2016 in order to achieve the same effect as that provision of the Solvency II Regulations would have (that is, conforming with the requirements of the relevant provision) when applied to a Solvency II special purpose vehicle.

4.1

This Chapter only applies to a UK multi-arrangement ISPV.

4.2

A UK multi-arrangement ISPV must be a UK protected cell company.

4.3

An assumption of risk notification must be submitted using the MISPV new risk assumption notification form.

4.4

An inter-cell arrangement notification must be submitted using the group of cells notification form.

5.1

A UK ISPV must not engage in any activities other than insurance risk transformation and activities directly arising from insurance risk transformation.

6.1

The MISPV new risk assumption notification form can be found here.

6.2

The group of cells notification form can be found here.