BKLM331300 - Chargeable equity and liabilities: excluded equity and liabilities: relevant insurance liabilities

Paragraph 33 of Schedule 19

Relevant insurance liabilities in respect of banking groups鈥� regulated insurance business are excluded from the bank levy.

The insurance liabilities covered by the exemption are those of a regulated insurer* who is carrying on an insurance business and the liabilities:

  • are to policyholders under contracts of long-term or general insurance whether written in the UK or overseas (contracts as defined by Parts 1 & 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544))
  • represent unallocated surpluses - those on valuation shown in a return deposited with the PRA under s9.6 of the Interim Prudential Sourcebook for Insurers made by the FCA under FSMA00.
  • represent participants鈥� interests in collective investment schemes (as defined in FSMA00/PART17 - S235 and S237). The liability here includes where it would be a liability of the insurer if the insurer prepared consolidated accounts.

*A 鈥榬egulated insurer鈥� is an entity which is authorised by law to carry on insurance business or an entity which is a member of a body or organisation which is so authorised.