Ensuring Post-Brexit Continuity: Part VII Translations for Insurers
26 Sep 2019
4 min read
The seemingly never-ending doubt over the precise nature of the UK’s exit from the European Union continues—and there remains no clear end in sight. Nevertheless, forward-thinking enterprises have been putting plans in place to avoid any commercial shock, protect themselves from risk, ensure continuity of operations and remain competitive in the pan-European marketplace.
At the forefront of this preparedness planning is the insurance industry which, under the Part VII Transfers process, is capitalizing on the opportunity to limit exposure, by moving books of business to new or existing corporate entities in the EU27 Member States. This ensures not just the ability to honor existing policies and contracts seamlessly following Brexit, but is also intended to give UK insurers ongoing access to the European Economic Area that they have enjoyed under the EU Single Market benefits. Likewise, EU insurers can also be granted continued access to the UK post-Brexit if they are currently passported into the UK market.
However, the process is complex and involves a number of steps including a court-sanction approval for the transfer of a business from the UK to EU27 under Part VII of the Financial Services and Markets Act 2000 (or the local equivalent in EU27 Member States for transfers into the UK), notifications to policyholders, regulatory authorization and, in some instances, the restructuring, relocation or reregistering of an existing business into another EU member state. This is a major undertaking with a multitude of process where an understanding of key documents is crucial to ensure the steps are met for a successful transfer.
We have already worked with a number of leading insurers in this area, assisting with their readiness for post-Brexit commercial operations. Our work has focused on the translation of critical legal documents and stakeholder communications to ensure clarity of key information, including:
- Legal submission documents for Part VII Transfers.
- Independent Expert reports outlining guidance for the courts on an insurer’s suitability for conducting a Part VII Transfer.
- Notices to policyholders of insurers’ intention to undertake a Part VII Transfer.
- Website content informing policyholders and other key stakeholders on Part VII Transfer undertakings.
- Transcriptions of responses collected from policyholders commenting on, or objecting to, proposed Part VII Transfers.
- Scheme documents detailing the particulars of an approved Part VII Transfer.
Work goes on for other insurers too and we continue to support many businesses as they embark on Part VII Transfers while the precise date for the UK’s exit remains unclear. Contact us now to understand how we can accelerate your translation needs in this business-critical area despite the unpredictable climate. Translation is available into any of the official languages recognized by EU Member States using our expert Language Services capabilities.
David Hetling
All from David HetlingRelated Articles
