First published on 1 November 2017
This Supervisory Statement (SS) sets out the Prudential Regulation Authority’s (PRA’s) approach and expectations in relation to the authorisation and supervision of insurance special purpose vehicles (ISPVs).
This SS is relevant to parties who wish to apply 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.
In accordance with Article 2 of the Implementing Regulation, an ISPV that takes on more than one contract for risk transfer from one or more cedants is referred to as a multi-arrangement insurance special purpose vehicle (MISPV). All references made to ISPVs in this SS are equally applicable to MISPVs, unless otherwise specified.
Chapters 2, 3 and 4 should be read in conjunction with:
- the Risk Transformation Regulations 2017 (RTR);
- the Financial Services and Markets Act 2000 (FSMA) as modified by the RTR;
- the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (the RAO) as modified by the RTR;
- the Directive 2009/138/EC (Solvency II Directive);
- the Commission Delegated Regulation (EU) 2015/35 (Delegated Regulation);
- the Commission Implementing Regulation (EU) 2015/462 (Implementing Regulation);
- the Insurance Special Purpose Vehicles Part, Insurance – Fitness and Propriety Part, Insurance - Senior Insurance Management Functions Part, Senior Insurance Managers Regime – Applications and Notifications Part, and Key Function Holder – Notifications Part of the PRA Rulebook; and
- the FCA statement – authorising and supervising Insurance Special Purpose Vehicles.
Firms may also find it useful to refer to the dedicated Insurance special purpose vehicles webpage.