The Risk Transformation Regulations 2017

UK Statutory Instrument 2017 No. 1212 — creates 4 criminal offences.

4offences created

0recorded in force

0revoked

Made: Not determined
In force from: Not determined
Extent: Not stated
Subject: Corporate, financial services, company law, employment, charity, electoral and tax
Made under: European Communities Act 1972, Financial Services and Markets Act 2000, Schedule 2 to the Financial Services and Markets Act 2000, Schedule 2 to, the European Communities Act 1972

Explanatory note

(This note is not part of these Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations make provision for transformer vehicles, within the meaning given by section 284A of the Financial Services and Markets Act 2001 (c. 8; section 284A was inserted by section 31 of the Bank of England and Financial Services Act 2016 (c. 14)). They are to be read with the Risk Transformation (Tax) Regulations 2017. Collectively, these Regulations facilitate and regulate the issue of insurance linked securities in the United Kingdom. Prior to making these Regulations, the Treasury consulted on 1st March 2016 and 23rd November 2016. These consultations explain the background to these regulations, in particular how the issue of insurance linked securities operates. They can be found at: https://www.gov.uk/government/consultations/insurance-linked-securities-consultation https://www.gov.uk/government/consultations/regulations-implementing-a-new-regulatory-and-tax-framework-for-insurance-linked-securities Part 2 of the Regulations makes provision for the authorisation and supervision of transformer vehicles which assume certain risks from insurance or reinsurance companies. A new regulated activity is introduced into the Financial Services and Markets Act 2000 (Regulated Activities) Order 2011 (S.I. 2001/544), which has the effect of bringing transformer vehicles carrying on that activity within the scope of regulation under the Financial Services and Markets Act 2000. An amendment to the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556) means that this activity is a PRA regulated activity for the purposes of the Financial Services and Markets Act 2000. Part 3 of these Regulations restricts the type of investors to whom transformer vehicles may issue investments. Part 4 of these Regulations enables the creation of a new type of body corporate, called a “protected cell company”, for transformer vehicles. Protected cell companies are comprised internally of different parts which, whilst being part of a single legal entity, are segregated from each other. This enables the protected cell company to ring-fence different contractual arrangements, so that the liabilities of the protected cell company arising in respect of a contractual arrangement are only payable out of assets held by the protected cell company in respect of that arrangement. A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ.

Offences created by this instrument

Penalty for contravention of this Section regulation 109(1) · Status not determined · Strict liability
A protected cell company that contravenes the prohibition in regulation 57(2) is guilty of an offence and liable— a on… regulation 58(1) · Status not determined · Strict liability
A director of a protected cell company commits an offence if the director fails to ensure that the protected cell… regulation 84(1) · Status not determined · Strict liability
A director of a protected cell company commits an offence if the director knowingly or recklessly causes records kept… regulation 84(2) · Status not determined · Requires proof of a state of mind

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

Risk Transformation Regulations 2017 Lords · Lords Chamber · 7 November 2017
Draft Risk Transformation Regulations 2017 Draft Risk Transformation (Tax) Regulations 2017 Commons · General Committees · 29 November 2017
Draft Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020 Commons · General Committees · 10 March 2020 · Anneliese Dodds (Oxford East) (Lab/Co-op)
It is a real pleasure to serve under you in the Chair, Ms Nokes. This is my first time on a Committee that you are chairing, so thank you very much. I am also grateful, as always, to the Minister for explaining the regulations. As he mentioned, insurance is of course incredibly important for the City and the whole country. I understand that the UK insurance market is the fourth largest in the world; it is the largest in Europe by some way. We account for an estimated premium volume of just under £220 billion, according to the latest figures, which are from 2017. It is therefore essential…
Draft Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020 Commons · General Committees · 10 March 2020 · The Economic Secretary to the Treasury (John Glen)
I beg to move, That the Committee has considered the draft Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020. It is a pleasure to serve under your chairmanship, Ms Nokes. The draft regulations serve two important functions. First, they set out information reporting requirements for motor insurers that will allow the Treasury to assess the benefits to consumers of the reforms set out in the Civil Liability Act 2018. Secondly, they will make a technical fix to the Risk Transformation Regulations 2017 by removing barriers to transactions in…
Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020 Lords · Grand Committee · 16 March 2020 · Lord Parkinson of Whitley Bay
I am grateful. Not having had the benefit of being here during the passage of the 2018 Act, I am not as au fait with it as other noble Lords. My noble friend Lord Hodgson and the noble Lord, Lord Tunnicliffe, both touched on the gap between the Act receiving Royal Assent and the Treasury reporting back. There are some good reasons which contribute to the time period. The Treasury believes that the reporting period of three financial years is an appropriate time period to make a thorough assessment of insurers’ costs and premiums, following reforms instigated by the 2018 Act, and to observe…
Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020 Lords · Grand Committee · 16 March 2020 · Lord Parkinson of Whitley Bay (Con)
My Lords, the regulations before the Committee serve two important functions. First, they set out information reporting requirements for motor insurers, which will allow Her Majesty’s Treasury to evaluate the benefits to consumers from the reforms set out in the Civil Liability Act 2018. Secondly, they make a technical fix to the Risk Transformation Regulations 2017 to clarify an ambiguity concerning the nature of qualified investors in transactions in insurance-linked securities. I begin by outlining the information reporting requirements under the Civil Liability Act, which constitute Part…

How Parliament handled it

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