Michael Noonan (Limerick City, Fine Gael)
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I move amendment No. 18:

In page 13, between lines 30 and 31, to insert the following:“Portfolio transfers

17. (1) Notwithstanding the regulations made under section 3 of the Act of 1972 to give effect to Article 4 and Article 308b(1) to (4) of the Solvency II Directive, the regulations made under section 3 of the Act of 1972 to give effect to Article 39 of the Solvency II Directive (in this section referred to as the “portfolio transfer regulations”), in so far only as they apply to insurance undertakings (within the meaning of the Solvency II Regulations), shall apply to a relevant undertaking that is an insurance undertaking, subject to the following modifications:

(a) where the insurance undertaking that is transferring its business is a relevant undertaking to which the Solvency II Regulations do not apply by virtue of the regulations made under section 3 of the Act of 1972 to give effect to Article 4 of the Solvency II Directive, a reference in the portfolio transfer regulations to an insurance undertaking (within the meaning of the Solvency II Regulations) shall be construed as a reference to an insurance undertaking (within the meaning of this Act);

(b) where the insurance undertaking to which the business is being transferred is a relevant undertaking to which the Solvency II Regulations do not apply by virtue of the regulations made under section 3 of the Act of 1972 to give effect to Article 4 of the Solvency II Directive,

(i) a reference in the portfolio transfer regulations to an accepting undertaking shall be construed as a reference to an insurance undertaking (within the meaning of this Act), and

(ii) the obligation in the portfolio transfer regulations to certify that the accepting undertaking possesses the necessary eligible own funds to cover the Solvency Capital Requirement shall be construed as an obligation to certify that the accepting undertaking possesses the necessary solvency margin in accordance with the Life Regulations or the Non-Life Regulations, as applicable.

(2) Notwithstanding the regulations made under section 3 of the Act of 1972 to give effect to Article 4 and Article 308b(1) to (4) of the Solvency II Directive, the regulations made under section 3 of the Act of 1972 to give effect to Article 39 of the Solvency II Directive, in so far only as it applies to reinsurance undertakings (within the meaning of the Solvency II Regulations), shall apply to a relevant undertaking that is a reinsurance undertaking.”.

The insurance undertakings to be regulated under this Bill should be entitled to continue to transfer their portfolios if required and it was considered simplest to allow them to do so under the same rules pertaining to those insurance undertakings governed by Solvency II. From a legal perspective there was a need to change the wording of section 17 of the Bill, as published, so as to allow for no doubt regarding how the Solvency II portfolio transfer regime is to apply to undertakings regulated under this Bill.