The regulators must prepare and maintain a memorandum which describes in general terms—
the role of each regulator in relation to the exercise of functions conferred by or under this Act so far as they relate to with-profits insurers, and
how the regulators intend to comply with section 3D in relation to the exercise of those functions so far as they relate to the effecting or carrying out of with-profits policies by with-profits insurers.
The memorandum required by this section may be combined with the memorandum required by section 3E.
If the memorandum required by this section is contained in a separate document, the PRA and the FCA must publish the memorandum as currently in force in such manner as they think fit.
Subsections (1) to (3) apply only if the effecting or carrying out of with-profits policies is a PRA-regulated activity.
For the purposes of this section—
a "with-profits policy" is a contract of insurance under which the policyholder is eligible to receive a financial benefit at the discretion of the insurer;
a "with-profits insurer" is a PRA-authorised person who has a Part 4A permission, or permission resulting from any other provision of this Act, relating to the effecting or carrying out of with-profits policies (whether or not the permission also relates to contracts of insurance of other kinds).
The Treasury may by order amend the definition of "with-profits policy" applying for the purposes of this section.