An insurer effecting or carrying out contracts of long-term insurance may not be wound up voluntarily without the consent of the PRA.
If notice of a general meeting of such an insurer is given, specifying the intention to propose a resolution for voluntary winding up of the insurer, a director of the insurer must notify the PRA as soon as practicable after he becomes aware of it.
A person who fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
A winding up resolution may not be passed—
A copy of a winding-up resolution forwarded to the registrar of companies in accordance with section 30 of the Companies Act 2006 must be accompanied by a certificate issued by the PRA stating that it consents to the voluntary winding up of the insurer.
If subsection (5) is complied with, the voluntary winding up is to be treated as having commenced at the time the resolution was passed.
If subsection (5) is not complied with, the resolution has no effect.
"Winding-up resolution" means a resolution for voluntary winding up of an insurer effecting or carrying out contracts of long-term insurance.
Before giving or refusing consent under subsection (1), the PRA must consult the FCA.
In the event that the activity of effecting or carrying out long-term contracts of insurance as principal is not to any extent a PRA-regulated activity—