Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm;
2. (2) in accordance with Insurance General Application 3, the Society, as modified by 4;
3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 4;
4. (4) a third country branch undertaking (other than a Swiss general insurer);
5. (5) a UK ISPV;
6. (5A) a third country insurance services provider; and
7. (6) in relation to any of the foregoing firms, any person who is:
1. (a) a Conduct Rules non-executive director;
2. (b) an employee of a firm who is a key function holder;
3. (c) a certification employee (other than a key function holder);
4. (d) approved under section 59 of FSMA by either:
1. (i) the PRA; or
2. (ii) the FCA, in relation to a relevant senior management function;
5. (e) an employee who should have been approved under section 59 of FSMA by either:
1. (i) the PRA; or
2. (ii) the FCA, in relation to a relevant senior management function;
6. (f) an employee who is performing a function that would have been a controlled function but for Insurance - Senior Management Functions 2.4; or
7. (g) a person in relation to whom a notice under section 59ZZA has been or could be given by the PRA to an authorised person.

1.2

In this Part the following definition shall apply:

employee

has the meaning given in Insurance – Certification 1.3.

2.1

If you are a natural person who is:

1. (1) an employee of a firm who is a key function holder;
2. (2) approved under section 59 of FSMA by either:
1. (a) the PRA; or
2. (b) the FCA, in relation to a relevant senior management function; or
3. (3) a person in relation to whom a notice under section 59ZZA has been given by the PRA to an authorised person,

you must comply at all times with all of the conduct standards.

2.1A

If you are a Conduct Rules non-executive director, you must comply at all times with the conduct standards specified in 3.1 to 3.3, 3.7 and 3.8.

2.1B

If you are an employee of a type specified in 1.1(6)(c), (e), (f) or (g) you must comply at all times with the conduct standards specified in 3.1 to 3.3.

2.2

A firm must require:

1. (1) any person performing a key function to observe the conduct standards specified in 3.1 to 3.3;
2. (2) any key function holder (other than a notified non-executive director and an authorised UK representative) to observe the conduct standards specified in 3.4 to 3.8, in addition to complying with (1);
3. (3) any notified non-executive director to observe the conduct standards specified in 3.7 and 3.8, in addition to complying with (1); and
4. (4) an employee of a type specified in 1.1(6)(c), (e) or (f) to observe the conduct standards specified in 3.1 to 3.3.

3.1

Individual Conduct Standard 1: You must act with integrity.

3.2

Individual Conduct Standard 2: You must act with due skill, care and diligence.

3.3

Individual Conduct Standard 3: You must be open and co-operative with the FCA, the PRA and other regulators.

3.4

Senior Manager Conduct Standard 1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

3.5

Senior Manager Conduct Standard 2: You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

3.6

Senior Manager Conduct Standard 3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

3.7

Senior Manager Conduct Standard 4: You must disclose appropriately any information of which the FCA or the PRA would reasonably expect to have notice.

3.8

Senior Manager Conduct Standard 5: When exercising your responsibilities, you must pay due regard to the interests of current and potential future policyholders in ensuring the provision by the firm of an appropriate degree of protection for their insured benefits.

4.1

This Part applies to the Society and managing agents separately.