Part VII Insights - Summary of key stages of a Part VII transfer

The Part VII transfer process is predominantly legal and regulatory driven and has a significant operational impact, cost and risk.


It consists of the main areas outlined below but its application to every transfer is unique due to the differing circumstances of each company and each transfer structure.


We have developed a methodology, tools and templates to guide you through the process and fast-track the project start-up.


Contact Us if you would like to know more on how we can help.


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!)


  • extensive 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