Prudential Regulation Authority Rulebook

5.1

This Chapter does not apply:

1. (1) to a Swiss general insurer;
2. (2) in respect of debts owed by reinsurers;
3. (3) in respect of insurance business carried on by a UK firm outside an EEA State; or
4. (4) in respect of general insurance business class groups 3 (Marine Transport) and 4 (Aviation) of Part II of Annex 11.2 to IPRU(INS) of the PRA Handbook as at 31 December 2015.

5.2

In accordance with 5.3, a firm must hold admissible assets held pursuant to Insurance Company – Risk Management 3.2:

1. (1) (where the admissible assets cover technical provisions in UK sterling), in any EEA State; and
2. (2) (where the admissible assets cover technical provisions in any currency other than UK sterling), in any EEA State or in the country of that currency.

5.3

For the purposes of 5.2:

1. (1) a tangible asset is to be treated as held in the country or territory where it is situated;
2. (2) an admissible asset consisting of a claim against a debtor is to be treated as held in any country or territory where it can be enforced by legal action;
3. (3) a security which is listed is to be treated as held in any country or territory where there is a regulated market on which the security is dealt; and
4. (4) a security which is not listed is to be treated as held in the country or territory in which the issuer has its head office.