Hard Brexit Impact Analysis

Page 32 of 106 Category If no agreement is reached: Consequence EU Document Finance Insurance Group Supervision: Insurance / reinsurance undertakings operating in the EU but part of a group with the parent undertaking registered in the United Kingdom will be subject, in the absence of equivalence supervision, to the Solvency II provisions empowering EU supervisory authorities to require a worldwide group solvency or to apply other methods aiming to ensure appropriate group level supervision including the establishment of a holding company with head office in the Union. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INSURANCE / REINSURANCE Finance Insurance Group-level internal model: As of the withdrawal date, any group-level internal model covering a UK group operating in the EU, approved by the UK Prudential Regulatory Authority before the withdrawal date will no longer be recognised in the EU as of the withdrawal date, and will require a new application and approval by an EU 27 supervisor. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INSURANCE / REINSURANCE Finance Insurance Entity-level internal model: As of the withdrawal date, any entity-level internal model for a subsidiary of an UK insurance undertaking established in one of the EU 27 Member States and approved by the supervisor of that Member State will remain valid. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INSURANCE / REINSURANCE Finance Insurance EU registration rights: As of the withdrawal date, Insurance / reinsurance intermediaries registered in the United Kingdom will no longer benefit from their EU registration rights and will therefore no longer be able to conduct business in the European Union on the basis of their UK registration. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INSURANCE / REINSURANCE Finance VAT As of the withdrawal date Goods which enter the VAT territory of the EU from the United Kingdom or are dispatched or transported from the VAT territory of the EU to the United Kingdom will respectively be treated as importation or exportation of goods This implies charging VAT at importation, while exports are exempt from VAT. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF CUSTOMS AND INDIRECT TAXATION