(1) A person ("A") who was, immediately before commencement -

(a) authorised under the Insurance Companies Act; and

(b) carrying on overseas insurance business, is to be treated as having, at commencement, a Part IV permission to carry on any corresponding overseas regulated activities in the country or territory where he carried on that overseas insurance business.

(2) In this article -

"corresponding overseas regulated activities" means regulated activities which -

(a) A carries on after commencement by virtue of continuing to carry on his overseas insurance business; and

(b) A is regarded as carrying on in the United Kingdom by virtue of section 418;

"overseas insurance business" means business which constituted insurance business within the meaning of section 2 of the Insurance Companies Act and which A was carrying on in a country or territory outside the United Kingdom without contravening either paragraph 1 or 5 of Schedule 2G to that Act [Schedule 2G was inserted by the 31D Regulations.].