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This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.

»Ê¹ÚÌåÓýapp definition of insurance activities as a qualifying activity

»Ê¹ÚÌåÓýapp second qualifying activity is insurance activities and insurance related activities. »Ê¹ÚÌåÓýapp term ‘insurance activitiesâ€� is defined by TIOPA10/S269 as:

• »Ê¹ÚÌåÓýapp effecting or carrying out of contracts of insurance by a regulated insurer (section 269 (1) (a)).
• Investment business that arises directly from activities falling within paragraph (a) (section 269 (1) (b)).
• »Ê¹ÚÌåÓýapp distinction between ‘effectingâ€� and ‘carrying outâ€� recognises, in particular, that insurers may go into ‘run offâ€� when they accept no new business but continue to receive premiums and discharge liabilities under existing contracts. »Ê¹ÚÌåÓýapp insurance trade continues in these circumstances.

»Ê¹ÚÌåÓýapp term ‘contract of insuranceâ€� in section 269 (1) (a) takes its meaning from that given by FA12S64, which in turn takes it meaning from Artivle 3(1) of the Financial Services and Marketing Act 2000 (Regulated Activities) Order 2001. »Ê¹ÚÌåÓýapp insurance business will in some cases be carried out by companies subject to regulation by an overseas authority. Provided the contracts of insurance are such that would be expected to fall within the FSMA00 criteria if they applied, they are treated as meeting the definition of qualifying activity. »Ê¹ÚÌåÓýapp entity carrying on the insurance business must be a regulated insurer, which means it must be authorised to undertake insurance in a territory under the laws prescribed by that territory. In practice, it would be very unlikely for a worldwide group to undertake unregulated insurance business.

Section 269 (1) (b) refers to the business of investing the premiums from the contracts of insurance effected or carried out by regulated members of the worldwide group. This does not mean that the investment activity has to be undertaken by the regulated insurer but it must be undertaken on behalf of the regulated insurer. This forms part of the trading activity.