Background
On 13 August 2015, the PRA published Policy Statement 21/15 ‘The Senior Insurance Managers Regime: a streamlined approach for non-Solvency II firms’. PS21/15 sets out key elements of the new Senior Insurance Managers Regime (SIMR) for insurance firms that are outside the scope of Solvency II.
The SIMR will replace the PRA's current Approved Persons Regime (APR) and will cover the assessment of fitness and propriety of senior insurance managers and directors, the allocation of certain responsibilities to senior individuals, and the application of relevant conduct rules to senior individuals.
Summary of proposals
In CP12/15 ‘Senior Insurance Managers Regime: a streamlined approach for non-Solvency II firms’ the PRA stated its intention to apply to non-Solvency II firms with assets of more than £25 million in respect of regulated activities, a similar SIMR regime as for Solvency II firms. This consultation sets out the details of the regime for those firms.
This consultation sets out some further proposals, additional to those consulted on in CP12/15, along with proposals to support the implementation of the proposed regime.
This consultation is relevant to UK insurance firms, not within the scope of Solvency II. In addition, it is proposed that these rules will cover run-off firms, on a transitional basis, so long as these firms are not subject to the Solvency II rules in accordance with Transitional Measures 2 in the Solvency II Firms section of the PRA Rulebook. These firms are described collectively as non-Directive firms (NDFs) in this CP.
Responses
This consultation closed on Monday 12 October 2015.
On 20 November 2015 the PRA published final policy in PS26/15 – The prudential regime, and implementation of the Senior Insurance managers Regime, for non-Solvency II firms.
Due to the size of the documents and to be helpful to readers, the PRA has split the CP into three files. The Consultation Paper also includes Appendix 1. Appendices 2, 3 and 4 are attached separately, as is Appendix 5.
Consultation Paper 26/15 (including Appendix 1)
This CP should be read alongside the Financial Conduct Authority’s corresponding CP15/25 ‘Changes to the Approved Persons Regime for insurers not subject to Solvency II’ in order to understand how the regulators’ reformed regimes will work together.