PINS 10.1.7 Intra-group transactions

(1) An insurer must ensure that any material transaction with another member of its group:
(a) is entered into on an 'arm's-length' basis; and
(b) is on fair and reasonable terms.
Guidance

A single transaction or series of connected transactions that constitute a sale, purchase, exchange, loan or extension of credit, investment or guarantee involving 0.5% or less of an insurer's eligible capital as at the end of the last standard quarter (the standard quarters end on 31 March, 30 June, 30 September and 31 December) before the effective date of the transaction would not normally be considered material for the purposes of this rule.
(2) The insurer must ensure that its books, accounts and records clearly and accurately disclose the nature and details of the transaction, including any accounting information necessary to demonstrate that the terms were fair and reasonable.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).