Structural reform | Ring-fencing transfer schemes | Inter-bank payment systems
This page provides information about applying to the PRA for the approval of a skilled person. More information about the PRA’s approach to ring-fencing transfer schemes can be found in the PRA Statement of Policy ‘The implementation of ring-fencing: the PRA’s approach to ring-fencing transfer schemes’ - see Related Links.
What is a ring-fencing transfer scheme?
Part VII of the Financial Services and Markets Act 2000 (FSMA) provides for a process leading to a court order to facilitate transfers of insurance or banking business. The Financial Services (Banking Reform) Act 2013 legislated for an additional process for transfer of business known as a ring-fencing transfer scheme (RFTS). Its purpose is to enable firms to restructure their businesses in order to comply with the ring-fencing requirements that will apply from 1 January 2019. For more information on ring-fencing, including the background, key changes and policy developments see the Structural reform webpage.
What is a ‘skilled person’?
As part of the RFTS process, firms must appoint a skilled person to prepare a scheme report. FSMA states that a scheme report may be made only by a person:
- appearing to the PRA to have the skills necessary to enable the person to make a proper report, and
- nominated or approved for the purpose by the PRA. The PRA must consult the FCA prior to making its decision.
How to submit the skilled person application
A firm carrying out a ring-fencing transfer scheme should apply to the PRA for approval of its nominee for skilled person. The skilled person application form can be found here. When completing the skilled person application, firms should consult the notes which provide details on the information that should be included in the application.
The skilled person application should be sent directly to email@example.com.
Skilled person applications should be made by the firm (the applicant) and countersigned by the nominee. In submitting the application, both the applicant and the nominee are verifying that the information contained within the application is complete and accurate.
Prior to submitting an application firms may wish to engage with the PRA and FCA so as to ensure that the information supplied by the applicant in support of its skilled person application is complete. Should you have any questions regarding the RFTS process and the skilled person application please contact firstname.lastname@example.org.