The prudential issues insurers must consider when entering into run-off, and for the duration of the run-off, are listed below.
We also refer firms to a letter we issued in July 2016 reminding firms of their continuing responsibilities in the way they interact with us when in run-off. The letter includes reference to Threshold Conditions, Fundamental Rules and the PRA Rulebook.
These requirements cover prudential issues only. For conduct issues, firms should contact the Financial Conduct Authority (FCA).
UK regulatory reporting requirements
The removal of effecting permissions
Applications to remove permissions must be submitted as a variation of permissions notification via the Financial Conduct Authority's Connect system.
Submitting a draft scheme of operations
Submitting schemes of operation: non-Directive firms
We will expect the scheme of operations to include the wording that addresses our expectations, as set out in Capital extractions by run-off firms within the general insurance sector - SS4/14, which are that:
- firms in run-off hold sufficient regulatory capital to continue to meet their obligations to policyholders as they fall due for the duration of the run-off
- firms satisfy themselves and us that this remains the case after a proposed capital extraction.
Obligations on firms which have previously submitted a scheme of operations
Part IV cancellations
Applications for Part IV cancellations must be submitted via the FCA's Connect system.