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Home > Prudential Regulation Authority > Authorisation and supervision of insurance special purpose vehicles - PS26/17
 

Authorisation and supervision of insurance special purpose vehicles - PS26/17

01 November 2017

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 42/16 ‘Authorisation and supervision of insurance special purpose vehicles’ and sets out the PRA’s final approach and expectations in relation to the authorisation and supervision of insurance special purpose vehicles (ISPVs), subject to the Risk Transformation Regulations 2017 (RTR) being passed through parliament.

This PS is relevant to all parties who wish to apply to the PRA for, or have obtained authorisation as, an ISPV. It is also relevant to insurers and reinsurers seeking to use UK ISPVs as risk mitigation in accordance with Solvency II.

This PS includes the following materials:

  • Supervisory Statement (SS) 8/17 ‘Authorisation and supervision of insurance special purpose vehicles’ (Appendix 1);
  •  amendments to the Insurance Special Purpose Vehicles Part of the PRA Rulebook (Appendix 2);
  • an application form in relation to the authorisation and supervision of ISPVs (Appendix 3); and
  • two sets of notification forms for MISPVs (Appendices 4 and 5).

The rules will be made and the SS and forms will be formally adopted once the Risk Transformation Regulations 2017 (RTR) have passed through Parliament. If this does not happen, the rules will not be made and the SS and forms will not be formally adopted by the PRA. The PRA does not expect there to be changes to the rules, SS and forms between now and formal adoption. If changes were to occur, the PRA will notify firms through issuing an addendum to this PS to explain any such changes.

Feedback on consultation responses

The PRA received sixteen responses to the CP. Chapter 2 summarise the responses, and provide the PRA’s feedback and proposed final approach in light of the version of the RTR as laid before Parliament.

Policy statement

Authorisation and supervision of insurance special purpose vehicles – PS26/17

Appendices

  1. SS8/17 ‘Authorisation and supervision of insurance special purpose vehicles’
  2. PRA RULEBOOK: SOLVENCY II FIRMS: NON SOLVENCY II FIRMS: TRANSFORMER VEHICLES INSTRUMENT 2017
  3. Application form for insurance special purpose vehicles (ISPVs)
  4. MISPV New Risk Assumption Notification Form
  5. MISPV Group of Cells Notification Form
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