In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out its proposed rules for a technical correction to the Solvency II firms: Insurance General Application Part of the PRA Rulebook, along with some consequential changes and minor administrative amendments related to the extension of the Senior Managers and Certification Regime (SM&CR or ‘the regime’) to insurers (see Appendix).
The CP should be read in conjunction with Policy Statement (PS) 15/18 ‘Strengthening individual accountability in insurance: Extension of Senior Managers and Certification Regime to insurers’, and Financial Conduct Authority (FCA) PS18/15 ‘Extending the Senior Managers and Certification Regime to insurers – Feedback to CP17/26 and CP17/41 and near final rules’.
This CP is relevant to Solvency II insurers (ie UK Solvency II firms, the Society of Lloyd’s and Lloyd’s managing agents, and third country (re)insurance branches), insurance special purpose vehicles (ISPVs), large non-Directive firms (NDFs), small NDFs and Swiss general insurers. Some of the proposals outlined in paragraphs 2.4 and 2.11, concerning cross references to the Financial Conduct Authority (FCA) Handbook in the PRA Rulebook and other minor consequential and administrative amendments, are also relevant to other PRA-regulated firms.
Responses and next steps
This consultation closes on Monday 1 October 2018, which is intended to ensure that final rules can be made in advance of implementation so that the industry has certainty on the technical details of the regime prior to commencement on Monday 10 December 2018. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP18_18@bankofengland.co.uk.