(This note is not part of the Instrument and does not purport to be a legal interpretation)
These Regulations give effect to Directive 2001/17/EC of the European Parliament and Council of 19 March 2001 (O.J. L 110, 20/4/2001, p.28). The Directive provides that the reorganisation and winding-up of an insurance undertaking should be under the control of the administrator or the liquidator appointed by the authorities of the undertaking's "home" Member State and that the laws of that Member State should apply, subject to certain exceptions listed in the Directive.
The Regulations also gives effect to one of the options provided in the Directive, namely, that policyholders must be given priority in relation to an insurance undertaking's technical reserves.
Insurance companies must also maintain a register of assets representing the technical reserves.