The 15 year proposal is significantly more extensive than the three year period previously proposed in the Brexit Omnibus Act.
The new General Scheme (General scheme of withdrawal of the UK from EU Bill 2020) intends to amend the European Union (Insurance and Reinsurance) Regulations 2015 and the European Union (Insurance Distribution) Regulations 2018.
In order for insurance undertakings and intermediaries to qualify for the 15 year run off period, they must be authorised in the UK or Gibraltar and they must fulfill the following criteria:
They must comply with Irish general good requirements
They must cease to conclude any new insurance contracts in Ireland
They must exclusively administer their existing portfolios of Irish policies/ business in order to run off their activity in Ireland
Importantly, a UK or Gibraltar based firm cannot rely on the run-off regime to write new business in Ireland while it establishes a third-country branch in Ireland.
Firms wishing to avail of the proposed provisions within the General Scheme provisions will be required to notify the Central Bank of Ireland no later than three months from the start of the 15 year period which will commence with the exit of the UK from the single market on 1 January 2021.
This proposal has not been mirrored for other categories of regulated financial services providers.
If you require further details on the General Scheme, please get in touch with our Financial Regulation team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.