Prudential Regulation Authority Rulebook

2.1

A firm must ensure that an investigation is made by the appropriate actuary into the financial condition of the firm in respect of its insurance business every third financial year.

2.2

When an investigation under this Chapter has been made, the firm must:

1. (1) make an FSC2 return in respect of the actuary’s report of the investigation; and
2. (2) deposit a copy of the FSC2 return with the PRA within 6 months of the end of the period to which it relates, using either:
1. (a) the postal address: Insurance Returns, Regulatory Data Group, Statistics and Regulatory Data Divisions (HO5 B-D), Bank of England, Threadneedle Street, London EC2R 8AH (and not the firm’s normal supervisory contact); or
2. (b) the appropriate electronic means made available by the PRA.

2.3

Subject to 2.4, a firm must deposit with the PRA, not later than 6 months after each anniversary of the date to which the accounts of the firm were made up for the purposes of the last investigation into its financial condition under this Chapter:

1. (1) a certificate given by the appropriate actuary, in the format of Form FSC4, that there has been no material change in its financial condition in respect of its insurance business since it sent the last FSC2 return under 2.2; or
2. (2) a statement by the appropriate actuary that he is unable to provide such a certificate.

2.4

2.3(2) does not apply where, before the date by which a certificate or statement must be deposited, a further FSC2 return under rule 2.2 has been deposited with the PRA.

2.5

If a firm deposits a statement under 2.3(2), the firm must ensure that an investigation is carried out, and in such a case:

1. (1) the date to which the firm’s accounts are made up for the purposes of the investigation must be the latest anniversary of the date to which its accounts were made up for the purposes of the last investigation; and
2. (2) the FSC2 return required by 2.2 must be deposited with the PRA within 6 months of the date by which the statement was required to be deposited under 2.3.

2.6

An investigation under 2.1 must include:

1. (1) a valuation of the liabilities of the firm attributable to its insurance business; and
2. (2) a determination of any excess over these liabilities of the assets representing the fund or funds maintained by the firm in respect of its insurance business and, where any rights of any long-term policyholders to participate in profits relate to particular parts of such a fund, a determination of any excess of assets over liabilities in respect of each of those parts.

2.7

If, within 24 months of the date of deposit, the PRA notifies the firm that any Form included in the FSC2 return appears to it to be inaccurate or incomplete, the firm must consider the matter and within one month of the date of notification it must correct any inaccuracies and make good any omissions and deposit the relevant parts of the return again.