In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out proposed amendments and optimisations to the Senior Insurance Managers Regime (SIMR) (see Chapter 2). It also includes a proposal to strengthen governance through requiring insurers to take steps to encourage board diversity (see Chapter 3). This CP also proposes consequential amendments to the Senior Managers Regime (SMR) forms following Policy Statement (PS) 12/17 ‘Strengthening accountability in banking and insurance: amendments and optimisations’ (see Chapter 4).
Chapters 2 and 3 of this CP are relevant to all Solvency II insurance firms (ie UK Solvency II firms, the Society of Lloyd’s and Lloyd’s managing agents, and third country (re)insurance branches), and to large non-Directive firms (large NDFs).
Chapter 4 of this CP is relevant to banks, building societies, credit unions, and PRA designated investment firms (collectively known as Relevant Authorised Persons (RAPs)).
Responses and next steps
The consultation on the proposals in:
- Chapters 2 and 3 closed on Friday 22 September 2017; and
- Chapter 4 closed on Monday 14 August 2017.
The PRA invites feedback on the proposals set out in this consultation.
The PRA intends to publish the final rules on the proposals in Chapters 2 and 3 in 2017 Q4 and proposes that rules would be implemented two months after their publication. The PRA intends to publish the final rules and forms for the proposals in Chapter 4 in 2017 Q3.
The CP including appendices runs to 262 pages. To be helpful to readers the PRA has attached a complete and split version below.
- Proposed new text to be included in SS35/15 ‘Strengthening individual accountability in insurance’ – included in split version above
- Draft instrument PRA RULEBOOK: SOLVENCY II FIRMS, NON-SOLVENCY II FIRMS: SENIOR INSURANCE MANAGERS REGIME (AMENDMENT) (NO.X) INSTRUMENT [DATE]
- Download PDF
- Draft instrument PRA RULEBOOK: CRR FIRMS, NON CRR FIRMS: SENIOR MANAGERS REGIME AMENDMENT (NO.Y) INSTRUMENT [DATE]
- Download PDF
- PRA RULEBOOK: CRR FIRMS, NON CRR FIRMS: SENIOR MANAGERS REGIME AMENDMENT INSTRUMENT (No.2) 2017)
- Draft forms to the SM&CR for relevant authorised persons (RAPs)