CAPI 9.1.3 Form and content of scheme report

(1) For the Financial Services Regulations, article 97 a scheme report must be in writing and must include the following matters:
(a) the names and contact details of the transferor and transferee;
(b) the purpose of the relevant scheme;
(c) a description of the business (including categories of contracts of insurance), assets, rights and liabilities (including technical provisions, premiums and claims incurred) to be transferred;
(d) the terms of the agreement or deed under which the transfer will be carried out;
(e) particulars of any other arrangements necessary to give effect to the transfer;
(f) the effects of the transfer on interested parties, including any action that interested parties must or may take before, or because of, the transfer;
(g) a comparison between the likely effects on interested parties of implementing the transfer and not implementing the transfer;
(h) a statement about any alternative schemes considered in preparing the report and how the proposed relevant scheme compares with those alternative schemes, particularly in their likely effects on interested parties;
(i) if different groups of interested parties are likely to be affected in different ways by the scheme — a statement about the material differences in the ways the groups are likely to be affected;
(j) the compensation (if any) offered to interested parties for any loss of rights or expectations;
(k) the likely effect of the scheme on investment management, new business strategies, administration, expense levels, and valuation basis, so far as they may affect—
(i) interested parties' contractual rights; and
(ii) levels of service provided to interested parties;
(l) any other matters that the entity preparing the report considers should be included in the report.
(2) The scheme report must also include:
(a) a statement that—
(i) there will be no materially adverse consequences from the proposed transfer to the policyholders of either the transferor or the transferee; and
(ii) the transferor and transferee will, if applicable, meet their minimum capital requirements after taking the proposed transfer into account; and
(b) a description of—
(i) any reinsurance arrangements that will be transferred to the transferee under the scheme; and
(ii) any guarantee or additional reinsurance proposed to cover the business that will be transferred or retained by the transferor.
Derived from QFCRA RM/2011-1 (as from 1st July 2011)