• Exemption for an interest in a foreign holding company of a foreign general insurance company

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    A company will qualify for this exemption if the following requirements are satisfied.

    • Approved stock exchange

    The shares you have in the holding company must be of a class listed on any stock market of a stock exchange approved in regulation 152N, Schedule 12 of the Regulations. See Appendix 1: Approved stock exchanges for more information.

    • Designated a general insurance company

    The holding company is included in a class of companies designated as engaged in general insurance on either:

    The class of shares you have in the holding company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange.

    If the holding company has only one subsidiary, that subsidiary must be wholly owned and be principally engaged in the active carrying on of general insurance business.

    If the holding company has more than one subsidiary, each subsidiary must be wholly owned and the principal activities of the wholly owned subsidiaries in the group, taken together as an economic unit, must be the active carrying on of general insurance business.

    The subsidiary or, where there is a group of subsidiaries, at least one of the wholly owned subsidiaries must be authorised under the law of its place of residence to carry on general insurance business. [section 509A]

    Last modified: 27 May 2005QC 17512