Summary of key stages of a Part VII transfer

The Part VII transfer process is predominantly legal and regulatory driven, typically has a significant operational impact and consists broadly of the areas below.


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Key stages


  • commercial negotiations between the transferor and transferee to determine the exact structure of the transfer and the valuation of assets and liabilities to be transferred


  • preparation of an Independent Expert's report on the impact of the transfer on policyholders - the Independent Expert is typically an actuary with suitable experience


  • drafting of all of the necessary Court documents (these are numerous & onerous to prepare!)


  • close liaison with the PRA, FCA, EEA regulators and any overseas regulators to gain their consent to the proposed transfer


  • communication with all of the transferor and transferee policyholders – some waivers may be applied for to exclude certain groups of policyholders who are totally unaffected but these are becoming increasingly difficult to obtain


  • communication with material third party suppliers whose contracts are to be transferred


  • response management and collation of any objections


  • advertising in the national UK press and any EEA & overseas states as required


  • overseas jurisdiction court hearings, if applicable – typically, Channel Islands and Isle of Man


  • UK court hearings – an initial hearing to approve any waivers and approve the form of the policyholder communication and a final hearing to hear any objections and to sanction the transfer if appropriate


  • operational changes to effect the transfer – these can be significant and particularly onerous if large portfolios or entire companies are being transferred which require widespread system and documentation changes