KAY INTERNATIONAL PUBLIC LIMITED COMPANY

Limits on what they may do

• Restriction on placing business with, or providing services to, overseas insurance undertakings

  The requirements below do not prohibit the firm from carrying on regulated activities where it acts solely for a customer in relation to arranging a contract of insurance for that customer. Business Restriction 1) The Firm must not carry on any activities, whether regulated or otherwise, in the UK, where those activities: a) are carried on for, or on behalf of, an overseas insurance undertaking; and b) would lead that insurance undertaking to be effecting or carrying out a contract of insurance in the UK. This includes effecting new policies and renewing any existing policies and applies to activities whether carried on by the firm directly or through its Appointed Representatives. 2) The requirement in (1) applies in relation to any overseas insurance undertaking which, as a result of the activities of the Firm or where it would be reasonably expected for the Firm to conclude, requires but does not have FSMA authorisation to carry on insurance business in the UK. 3) The Firm must not enter into any arrangements with an overseas insurance undertaking where the Firm would be acting for or on behalf of that insurance undertaking in the UK in relation to that insurance undertaking effecting or carrying out a contract of insurance unless: a) the Firm has taken all appropriate steps to identify that the arrangement would not involve the insurance undertaking carrying on regulated activity in the UK for which it would need FSMA authorisation; b) the Firm has given notice of the arrangements to the FCA including providing the analysis in 3(a). 4) The Firm must not arrange or place any PII policies for customers which are FSMA regulated firms where the PII policy would be placed with an insurance undertaking that is not permitted to be used by them under MIPRU and/or IPRU-INV rules. Notification to insurers 5) The Firm must notify any overseas insurance undertakings with whom it, or its Appointed Representatives, placed the relevant business or have arrangements under which they could place relevant business of the effect of the restrictions in (1) – (4). Past Business Review 6) The Firm must carry out a past business review in relation to the relevant business (the “Past Business Review”). 7) The Past Business Review in (6) must: a) identify any customer: i) which are/were FSMA regulated firms with or for whom the Firm or its Appointed Representatives arranged or placed a PII policy with an overseas insurer that is not permitted to be used by them under MIPRU and/or IPRU-INV rules; and ii) with or for whom the Firm or its Appointed Representatives arranged or placed a policy with an overseas insurer in circumstances under which the overseas insurance undertaking would have properly been regarded as having effected or carried out the insurance contract in the UK (using the tests set out in Requirements 1 and 2 even though those Requirements were not in place at the time); b) notify these customers in writing; c) (for all policies in 7(a)) identify whether there is a risk of customer harm. Among other considerations, this should include whether any policies have been placed in breach of ICOBS, PROD & Consumer Duty rules; 8) Where the Firm identifies any risk of harm to existing customers it must provide the FCA with a copy of its remediation plan for those customers. Definitions 9) In this application: Overseas insurance undertaking: An insurance undertaking which has its registered office (or, if it has no registered office, its head office) outside the United Kingdom and is not a FSMA authorised person PII policy: A professional indemnity insurance policy Relevant business: Insurance policies arranged or placed by the Firm, whether directly or through its Appointed Representatives, that were effected by an overseas insurance undertaking, for a customer falling within paragraph 8(a)