Standard Life Assurance Company

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A decision made (11/05/2006) regarding Invitation for Minister to comment upon the Standard Life Assurance Company Transfer Scheme.

Subject:	Invitation for Minister to comment upon the Standard Life Assurance Company Transfer Scheme
Decision Reference:	MD-E-2006-0076		Exempt clause(s):	n/a
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	n/a		Report File ref:
Written report – Title	Standard Life Assurance Company – Transfer Scheme-
Written report – Author (name and job title)	Paul de Gruchy, Director, Finance Industry Development
Decision(s): To notify the Jersey Financial Services Commission that the Minister has no comments to make in respect of the transfer scheme.
Reason(s) for decision: The Minister relies on the conclusions of the Commission, based upon an actuarial report, to the effect that policyholders will not be prejudiced by the transfer scheme.
Action required: PDG to notify Commission that the Minister has no comment to make and that the Royal Court be informed that he has no objections or comments to make in respect of the transfer scheme.
Signature: Senator Philip Ozouf (Minister)		Date of Decision: 11 May 2006

Standard Life Assurance Company - Transfer Scheme.

MINISTER FOR ECONOMIC DEVELOPMENT

STANDARD LIFE ASSURANCE COMPANY

TRANSFER SCHEME

1 THE ISSUE

1.1 Under the provisions of the Insurance Business (Jersey) Law 1996 (the “Insurance Law”), when an insurance company holding a permit under that law wishes to transfer its assets and liabilities to another insurance company a Formal Transfer Scheme (the “Scheme”) must be produced for the approval of the Royal Court. The law provides for the Scheme to be reviewed by the Minister, and for the Minister to make such representations to the court as it considers desirable.

1.2 It is proposed that the long-term insurance assets and liabilities of The Standard Life Assurance Company (“SLAC”) be transferred to SLLC Limited (“SLLC”).

1.3 The purpose of this Paper is to set out the background to the proposal and to recommend that the Minister informs the Commission that he has no objections or observations to make in respect of the Scheme.

2 BACKGROUND

2.1 The Background to this proposal is set out in sections 3 and 4 of the annex to this paper, which was prepared by David Hart of the Financial Services Commission.

2.2 In summary, the purpose of the scheme is to assist in the demutualization and flotation of Standard Life by transferring insurance assets and liabilities from SLAC, a mutually owned company to SLLC, a subsidiary of Standard Life plc, a new company that will be the holding body of the Standard Life Group.

2.3 The Commission has carried out a review of the documentation intended to effect the Scheme, and has noted the contents of an actuarial report into the same. The Commission is of the view that, according to the terms of the Scheme, the expectations of policyholders will not be adversely affected by the proposed transfer which is, in all material respects, fair to all eligible members and policyholders.

2.4 It should also be noted that, as is often the case with schemes of this type, the Royal Court will be asked to consider derogations from the provisions of the Insurance Law in relation to the manner in which policy holders are to be notified of the proposals and the information which will, at first instance, be sent to policyholders.

3 ISSUE AND RECOMMENDATION

3.1 It is recommended that the Minister accepts the observations of the Commission and agree that, should the opinion of the Minister be sought by the Royal Court, a representative of the Commission be asked to inform the Court that the Minister has no objections or comments to make in relation to the proposed Scheme.

3.2 The Minister is also requested to note the derogations from the Law that will be sought by SLAC and SLLC (as set out in paragraph 4.3 of the Annex) and to confirm that he has no objections or comments to make in that regard.

PAUL DE GRUCHY

Director, Finance Industry Development

5th May 2006

Annex

JFSC Paper of 26 April 2006