(This note is not part of the Order)

This Order varies the threshold conditions in Schedule 6 to the Financial Services and Markets Act 2000, which authorised persons, and applicants for authorisation, under that Act must satisfy.

Article 2 varies the condition set out in paragraph 1(1) of Schedule 6 with the effect that limited liability partnerships, a new form of legal entity created by the Limited Liability Partnerships Act 2000 (c. 12), are not eligible to obtain permission to effect or carry out contracts of insurance.

Article 3(1) sets out additional threshold conditions which must be satisfied by insurers having their head offce outside the European Economic Area. Conversely, article 3(3) provides that the conditions set out in paragraphs 3 to 5 of Schedule 6 (relating to the supervision of persons who have close links with other persons; adequacy of resources; and fitness and properness) do not apply to Swiss general insurance companies (as defined in article 1(2)).