Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a large non-directive insurer; and
2. (2) a Swiss general insurer.

1.2

In this Part, the following definitions shall apply:

commencement date

has the meaning given in Large Non-Solvency II Firms – Senior Insurance Managers Regime – Transitional Provisions.

continuing approval

has the meaning given in the Transitional Order.

grandfathering key function holder

means, in relation to a firm, a key function holder who is seeking continuing approval.

grandfathering notification

has the meaning given in Large Non-Solvency II Firms – Senior Insurance Managers Regime – Transitional Provisions.

key function holder notification form

means Form M.

new SIMF applicant

means, in relation to a firm, a key function holder (other than a grandfathering key function holder) who submits an application for a senior insurance management function prior to the commencement date.

notified non-executive director

means a non-executive director of a firm who is not an approved person in relation to that firm.

scope of responsibilities form

means the form containing the information referred to in Large Non-Solvency II Firms – Allocation of Responsibilities 5.1(3).

transitional key function holder

means, in relation to a firm, a person who is a key function holder as at 7 March 2016.

transitional notified non-executive director

means, in relation to a firm, a person who is approved to perform controlled function CF2 or CF5 on 6 March 2016 and who will be a notified non-executive director at that firm on the commencement date.

Transitional Order

has the meaning given in Large Non-Solvency II Firms – Senior Insurance Managers Regime – Transitional Provisions.

2.1

This Chapter does not apply in relation to a:

1. (1) transitional key function holder, in relation to key functions held as at the commencement date;
2. (2) grandfathering key function holder, in relation to key functions held as at the commencement date;
3. (3) new SIMF applicant; or
4. (4) transitional notified non-executive director.

2.2

A firm must provide the information required by Large Non-Solvency II Firms – Fitness and Propriety 4.1 for each key function holder as soon as reasonably practicable after the appointment of the key function holder.

2.3

The PRA directs that, subject to 2.4, the information referred to in 2.2 must be provided to the PRA in the key function holder notification form in accordance with 3.3.

2.4

The PRA directs that:

1. (1) where the key function holder is to be approved by the PRA to perform a senior insurance management function, the firm must provide the information referred to in 2.2 to the PRA in whichever Form is required for the senior insurance management approval application, pursuant to Large Non-Solvency II Firms – Senior Insurance Managers Regime - Applications and Notifications 2, which must be accompanied by a scope of responsibilities form; and
2. (2) where the key function holder is to be approved by the FCA to perform an FCA controlled function, the firm is not required to submit a key function holder notification form to the PRA to the extent the firm provides the information referred to in 2.2 to the FCA as part of the application to the FCA, with a scope of responsibilities form.

3.1

The PRA directs that, save as required by 3.2 and 3.3, a firm must make any applications, notifications or submissions required by this Part by submitting the form specified using the ONA system.

3.2

If, under any direction or rule in this Part:

(1) a firm is required to make an application, notification or submission online; and

(2) the information technology systems used by the PRA fail and online submission is unavailable for 24 hours or more,

until such time as facilities for online submission are restored, a firm must submit the specified form in the way set out in Notifications 7.

3.3

The notifications required under 2.3 and 5.5 should be submitted in accordance with Notifications 7.

4.1

The key function holder notification form, Form M, may be found here.

5.1

This Chapter applies only in relation to a:

(1) transitional key function holder, in relation to key functions held as at the commencement date;

(2) grandfathering key function holder, in relation to key functions held as at the commencement date;

(3) new SIMF applicant; and

(4) transitional notified non-executive director, in relation to his or her position as a notified non-executive director as at the commencement date.

5.2

A firm must provide the information required by Large Non-Solvency II Firms – Fitness and Propriety 4.1 for each transitional key function holder, grandfathering key function holder, new SIMF applicant and transitional notified non-executive director in accordance with 5.3 to 5.6.

5.3

In respect of a grandfathering key function holder, the requirement in 5.2 will be satisfied where the firm submits a grandfathering notification in accordance with Large Non-Solvency II Firms – Senior Insurance Managers Regime – Transitional Provisions 2.1, or the update to the grandfathering notification in accordance with Large Non-Solvency II Firms – Senior Insurance Managers Regime – Transitional Provisions 5 (as the case may be), provided that the firm also submits a scope of responsibilities form to the PRA in respect of that grandfathering key function holder by 7 September 2016.

5.4

In respect of a new SIMF applicant, the PRA directs that a firm must provide the information referred to in 5.2 to the PRA in whichever form is required for the senior insurance management approval application, pursuant to Large Non-Solvency II Firms – Senior Insurance Managers Regime – Applications and Notifications 2, which must be accompanied by a scope of responsibilities form.

5.5

In respect of a transitional notified non-executive director, the requirement in 5.2 will be satisfied where the firm records the transitional notified non-executive director in the firm’s governance map on or before the commencement date.

5.6

In respect of a transitional key function holder who is not a grandfathering key function holder, a new SIMF applicant or a transitional notified non-executive director, the PRA directs that a firm must provide the information referred to in 5.2 to the PRA by sending the key function holder notification form to the PRA in accordance with 3.3 by 7 September 2016.