PRA published a Policy Statement PS4/18 that provides feedback to the responses to CP30/17 on the approach to branch authorization and supervision for international insurers. One material change has been made to the draft Supervisory Statement SS2/18, following consultation. SS2/18 introduces new factors to be considered alongside PRA’s current requirements for third-country branch authorization. The new approach comes into effect from March 29, 2018.
SS2/18 is relevant to all third-country insurance branches, as well as to any insurer not headquartered in the United Kingdom looking to operate in the United Kingdom in the future. SS2/18 does not apply to Swiss General Insurers, as defined in the PRA Rulebook, to which different requirements apply pursuant to the Swiss Treaty Agreement (No. 91/370/EEC). This approach would be relevant to authorizations for the European Economic Area firms currently branching into the UK under passporting arrangements and intending to apply for PRA authorization to continue operating in the UK after the UK’s withdrawal from EU. SS2/18 sets out the PRA expectations on when a subsidiary would be more appropriate than a branch for a third-country insurer wishing to carry out insurance business in the UK. However, SS44/15 titled "Solvency II: third-country insurance and reinsurance branches" remains unchanged.
Effective Date: March 29, 2018
Keywords: Europe, UK, Insurance, PS4/18, SS2/18, Third Country, Passporting, Brexit, PRA
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