Featured Product

    PRA and FCA Consult on Implementing Extension of SM&CR to Insurers

    December 13, 2017

    PRA published the consultation paper CP28/17 that sets out the proposed changes to forms, along with other consequential changes and minor administrative amendments related to the extension of the Senior Managers and Certification Regime (SM&CR) to insurers. It also sets out proposals for the removal of gendered language from the SM&CR for banking firms and insurers. FCA also published a package of proposals (including CP17/40, CP17/41, and CP17/42) on how firms and individuals will transition to the SM&CR. All the PRA and FCA consultations close on February 21, 2018.

    CP28/17 includes the following appendices: draft instrument (Appendix 1); amended Part 4A Permissions forms (Appendix 2); and the rationalized SM&CR forms for dual-regulated banking firms and insurers (Appendix 3). The key proposals in CP28/17 include:

    • The rationalization of the existing SM&CR/SIMR forms to produce a streamlined set of forms, and amendments to Part 4A Permission forms (Chapter 2)
    • Implementing the extension to insurers, including some transitional arrangements and changes to references to the existing Senior Insurance Managers Regime (SIMR) and Senior Insurance Management Functions or SIMFs (Chapter 3)
    • The process for transferring from a Senior Management Function (SMF) at an insurance firm to a banking firm (Chapter 4)
    • The removal of gendered language from the SM&CR (Chapter 5)

    CP28/17 of PRA should be read in conjunction with CP8/17, which proposed optimizations to the existing SIMR, and CP14/17, which proposed the extension of the SM&CR to insurers. CP28/17 is relevant to PRA-authorized UK banks, building societies, credit unions, including UK branches of non-EEA firms, and PRA-designated UK investment firms (banking firms), Solvency II insurers (that is, UK Solvency II firms, the Society of Lloyd’s and Lloyd’s managing agents, third-country (re)insurance branches), insurance special purpose vehicles (ISPVs), large non-Directive firms (NDFs), small NDFs, and Swiss general insurers. The extended SM&CR for insurers will not come into effect until a commencement date has been set by HM Treasury, at which point PRA proposes to publish the final policy and rules. This is currently expected during 2018.

     

    Related Links

    Comment Due Date: February 21, 2018

    Keywords: Europe, EU, UK, Banking, Insurance, SM&CR, SIMR, Accountability, FCA, PRA

    Related Articles
    News

    SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

    SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

    August 22, 2019 WebPage Regulatory News
    News

    ECB Revises Prudential Provisioning Expectations for New NPEs

    ECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)

    August 22, 2019 WebPage Regulatory News
    News

    CFTC Proposes to Revise Information Collection on Margin Requirements

    CFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).

    August 21, 2019 WebPage Regulatory News
    News

    FASB to Delay Effective Date for Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.

    August 21, 2019 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9

    EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.

    August 21, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Its Consultation Related to SME Financing

    FSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.

    August 21, 2019 WebPage Regulatory News
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    EBA and ESMA Issue Joint Response to EC Letter on Crypto-Assets

    EBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3681