Section 109 of the Financial Services and Markets Act 2000 ('FSMA') requires that a scheme report must accompany an application to the High Court of England and Wales ('the Court') to approve an insurance business transfer scheme. This scheme report should be produced by a suitably qualified independent person (the 'Independent Expert') who has been nominated or approved by the Financial Services Authority ('FSA'). The scheme report should address the question of whether any policyholders impacted by the insurance business transfer are adversely affected to a material extent.