• 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 152I, 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:

    • an approved stock exchange, or
    • an approved international sectoral classification system.
     

    See Appendix 3: Approved international sectoral classification systems for more information.

    • Trading requirement

    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.

    • Subsidiaries principally engaged in general insurance business

    If the holding company has only one wholly owned subsidiary, that subsidiary must be authorised under the law of its place of residence to carry on general insurance business, and be principally engaged in the active carrying on of general insurance business.

    If the holding company has more than one wholly owned subsidiary, the principal activities of the wholly owned subsidiaries in the group, considered together, must be the active carrying on of general insurance business. 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: 04 Feb 2010QC 21777