Citation, commencement and effect

1. —(1) These Regulations may be cited as the Insurance Companies (Overseas Life Assurance Business) (Compliance) (Amendment) Regulations 2007 and shall come into force on 13th August 2007.

(2) These Regulations have effect in relation to accounting periods beginning on or after 1st January 2007 and ending on or after the date on which these Regulations come into force.

Amendments to the Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995

2.The Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995( 4 ) are amended as follows.

Amendment of regulation 2

3. —(1) Regulation 2 (interpretation)( 5 ) is amended as follows.

(2) In paragraph (1)—

(a) insert the following definitions in the appropriate places—

“ “child trust fund business” has the meaning given by section 431BA ( 6 ) ; ” , and

“ “excepted business” means pension business, individual savings account business, child trust fund business, life reinsurance business and long-term business which is not life assurance business; ” ;

(b) for the definition of “individual savings account business” substitute—

“ “individual savings account business” has the meaning given by section 431BB; ” ;

(c) for the definition of “relevant business” substitute—

“ “relevant business” means—

(d) in the definition of “relevant policy”, omit “, or any underlying policy,”; and

(e) omit the definition of “underlying policy”.

(3) In paragraph (3), omit “9, 10”.

Insertion of regulation 3B

4. After regulation 3A( 7 ) (exclusion of business of friendly society which is exempt from tax) insert—

“ Exclusion of tax exempt life assurance business

3B. These Regulations do not apply to any business of an insurance company the profits arising from which are exempt from corporation tax by virtue of section 460(11) or (12) of the Income and Corporation Taxes Act 1988 ( 8 ) . ”

Amendment of regulation 4

5. In regulation 4 (business which is overseas life assurance business: general), for “11” substitute “8”.

Amendment of regulations 5, 7, 7A and 8

6. In the following places, for “branch” substitute “permanent establishment”—

(a) regulation 5 (business other than reinsurance business effected by a company resident in the United Kingdom outside the United Kingdom)( 9 ) (wherever occurring),

(b) regulation 7 (business other than reinsurance business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company – policies or contacts made on or after 1st January 1996)( 10 ) (wherever occurring except in paragraph (1A)),

(c) regulation 7A (business other than reinsurance business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company – policy holder not within regulation 7)( 11 ) (wherever occurring except in paragraph (2)), and

(d) regulation 8 (certain business other than reinsurance business where the company comes into possession of additional information)( 12 ) (wherever occurring except in paragraph (1A)).

Omission of regulations 9, 10, 10A and 11

7. Omit—

(a) regulation 9 (reinsurance of business effected by a company resident in the United Kingdom outside the United Kingdom)( 13 ),

(b) regulation 10 (reinsurance of business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company)( 14 ),

(c) regulation 10A (reinsurance of business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company – policy holder not within regulation 7)( 15 ), and

(d) regulation 11 (classification of certain categories of reinsurance business as overseas life assurance business)( 16 ).

Amendment of regulation 12

8. In regulation 12( 17 ) (territories in which policy holders residing: general), for “16A” substitute “14A”.

Amendment of regulations 13, 14 and 14A

9. For “branch” substitute “permanent establishment”—

(a) in regulation 13 (business other than reinsurance business effected by a company resident in the United Kingdom outside the United Kingdom)( 18 ) (wherever occurring except in paragraph (1A)),

(b) in regulation 14 (business other than reinsurance business effected by a company resident in the United Kingdom outside the United Kingdom or by an overseas life insurance company)( 19 ) (wherever occurring except in paragraph (1A)), and

(c) in regulation 14A (business other than reinsurance business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company – policy holder not within regulation 7)( 20 ) (wherever occurring except in paragraph (2)).

Omission of regulations 15, 16 and 16A

10. Omit—

(a) regulation 15 (reinsurance business effected by a company resident in the United Kingdom outside the United Kingdom)( 21 ),

(b) regulation 16 (reinsurance business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company)( 22 ), and

(c) regulation 16A (reinsurance business effected either by a company resident in the United Kingdom otherwise than outside the United Kingdom or by an overseas life insurance company – policy holder not within regulation 7)( 23 ).

Amendment of regulation 18

11. —(1) Regulation 18( 24 ) (reclassification of policy or contract from date when it was effected) is amended as follows.

(2) In paragraph (1)—

(a) omit sub-paragraphs (aa), (b), (ba) and (d), and

(b) in sub-paragraph (e)—

(i) for “policy, contract or underlying policy” substitute “policy or contract”,

(ii) omit “or the relevant business in relation to that underlying policy was entered into”,

(iii) renumber paragraph (a) as paragraph (i), and

(iv) renumber paragraph (b) as paragraph (ii).

(3) Omit paragraph (2).

(4) For paragraph (3), substitute—

“ (3) The company shall treat the policy or contract as relating to basic life assurance and general annuity business from the date the policy or contract was made or transferred. ”

Amendment of regulation 19

12. —(1) Regulation 19( 25 ) (reclassification of policy or contract from date after it was effected) is amended as follows.

(2) In paragraph (1)—

(a) omit sub-paragraphs (b) and (d), and

(b) in sub-paragraph (e)—

(i) for “policy, contract or underlying policy” substitute “policy or contract”,

(ii) omit “or the relevant business in relation to that underlying policy was entered into”,

(iii) renumber paragraph (a) as paragraph (i), and

(iv) renumber paragraph (b) as paragraph (ii).

(3) Omit paragraph (2).

(4) For paragraph (3), substitute—

“ (3) Subject to paragraphs (3A) and (3B) below, the company shall treat the policy or contract as relating to basic life assurance and general annuity business from the end of the accounting period in which the relevant date falls. ”