GIM10020 - Non-resident insurers: regulatory background: general

The Financial Services and Markets Act 2000 permits “authorised persons” to carry on “regulated activities” (which includes effecting and carrying out contracts of insurance) subject to the provisions of the Act. Section 31 FSMA 2000 defines authorised persons as:

• a person who has permission under Part 4 of the Act to carry on regulated activities
• an EEA firm qualifying for authorisation under Schedule 3 to the Act
• a Treaty firm qualifying for authorisation under Schedule 4 to the Act
• a person who is otherwise authorised under the Act.

The equivalent provisions in the Insurance Companies Act 1982, which applied until 1 December 2001, were in Part I of that Act and Schedule 2F to it (EC companies).

‘EEA’ and ‘Treaty’ firms do not have to obtain permission under Part 4 FSMA to carry on insurance business in the UK and are subject to regulation in their home states ( GIM10030). A non-EEA firm must obtain Part 4 permission ( GIM10090).