General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
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 Insights

EBA Finalizes Guidelines on the STS Criteria in Securitization

EBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.

December 12, 2018 WebPage Regulatory News

OSFI Sets Domestic Stability Buffer for D-SIBs at 1.75%

OSFI set the level for the Domestic Stability Buffer at 1.75% of total risk-weighted assets, as calculated under the Capital Adequacy Requirements (CAR) Guideline.

December 12, 2018 WebPage Regulatory News

FSI Publishes Paper on Proportionality in Insurance Solvency Rules

FSI published a paper on proportionality in the application of insurance solvency requirements.

December 11, 2018 WebPage Regulatory News

BCBS Updates Framework for Pillar 3 Disclosure Requirements

BCBS published the updated framework for Pillar 3 disclosure requirements.

December 11, 2018 WebPage Regulatory News

EBA Issues Revised List of Validation Rules for Reporting

EBA revised the list of validation rules in its implementing technical standards on supervisory reporting.

December 11, 2018 WebPage Regulatory News

IMF Reports Assess the Stability of Financial System in Brazil

IMF published a report on the results of the Financial System Stability Assessment (FSSA) on Brazil.

December 11, 2018 WebPage Regulatory News

FED Governor Examines Pros of Imposing Capital Buffers on Large Banks

At the Peterson Institute for International Economics in Washington D.C., the FED Governor Lael Brainard summarized the financial stability outlook, highlighted areas where financial imbalances seem to be building, and touched on the related policy implications.

December 07, 2018 WebPage Regulatory News

US Agencies Propose Rule on Appraisals for Real Estate Transactions

US Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.

December 07, 2018 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for December 2018

This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).

December 07, 2018 WebPage Regulatory News

FED Updates Reporting Form and Instructions for FR Y-14Q

FED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.

December 06, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2325