Prudential Regulation Authority Rulebook

3.1

Each of the responsibilities set out in this rule is an SIMR prescribed responsibility:

1. (1) responsibility for ensuring that the firm has complied with its obligations in Insurance - Fitness and Propriety to:
1. (a) ensure that every person who performs a key function (including every person in respect of whom an application under section 59 of FSMA is made) is a fit and proper person; and
2. (b) provide and obtain regulatory references:
2. (2) responsibility for leading the development of the firm’s culture by the governing body as a whole;
3. (3) responsibility for overseeing the adoption of the firm’s culture in the day-to-day management of the firm;
4. (4) responsibility for the production and integrity of the firm’s financial information and its regulatory reporting;
5. (5) responsibility for management of the allocation and maintenance of the firm’s:
1. (a) capital; and
2. (b) liquidity;
6. (6) responsibility for the development and maintenance of the firm’s business model by the governing body;
7. (7) responsibility for performance of the firm’s ORSA;
8. (8) responsibility for leading the development and monitoring effective implementation of policies and procedures for the induction, training and professional development of all members of the firm’s governing body;
9. (9) responsibility for monitoring effective implementation of policies and procedures for the induction, training and professional development of all of the firm’s key function holders (other than members of the firm’s governing body);
10. (10) responsibility for oversight of the independence, autonomy and effectiveness of the firm’s policies and procedures on whistleblowing including the procedures for protection of staff who raise concerns from detrimental treatment; and
11. (11) responsibility for overseeing the development and implementation of the firm’s remuneration policies and practices.

3.2

Each of the following responsibilities is an SIMR prescribed responsibility in respect of a small run-off firm:

1. (1) responsibility for providing the governing body with an up-to-date business plan and all relevant management information;
2. (2) responsibility for managing the small run-off firm’s financial resources;
3. (3) responsibility for ensuring the governing body is kept informed of its legal and regulatory obligations; and
4. (4) responsibility for the oversight of systems and controls, along with risk management policies and procedures, that are proportionate to the nature, scale, and complexity of the risks inherent in the small run-off firm’s business model.

3.3

The responsibility set out in rule 3.3(1) is an SIMR prescribed responsibility in the circumstances specified:

1. (1) if a firm is not significant and outsources its internal audit function to an external third party service provider (that is, a service provider outside the firm or the firm’s group), responsibility for providing for an effective internal audit function in accordance with Conditions Governing Business 5 and for overseeing the performance of the internal audit function.