PRA Issues PS26/18 on Implementing the Extension of SM&CR to Insurers
PRA published policy statement (PS26/18) that provides feedback to responses to the consultation paper CP18/18 on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers. PS26/18 contains amendments to the final rules for the implementation of the extension of the SM&CR to insurers, along with a technical correction to the Insurance General Application Part of the PRA Rulebook. The final rules in PS26/18 will apply from December 10, 2018.
CP18/18 garnered one response that pertained to the general overlap rule, which already applies to insurers and deposit-takers and aims to minimize the overlap between the senior managers and approved person regimes of PRA and FCA. Amendments to this rule were not consulted on by PRA in CP18/18. The policy intent behind the extension of SM&CR to insurers has been to align the rules for all dual-regulated firms wherever possible. PRA, in conjunction with FCA, will continue to monitor effectiveness of the policy for application of the overlap rule to the approval process, when an individual will be performing both a PRA senior management function and an FCA governing function.
PS26/18 should be read in conjunction with PS15/18 of PRA and PS18/15 of FCA, which involve the extension of SM&CR to insurers. The extension of the regime to insurers is being introduced by amendments to the Financial Services and Markets Act 2000 (FSMA) through the BoE and Financial Services Act 2016 (the 2016 Act). The extended SM&CR for insurers will come into effect on December 10, 2018 through the application of the Commencement regulations that have been published by HM Treasury for the relevant amendments to FSMA in the 2016 Act. Following the publication of the Commencement regulations by HM Treasury, PRA published CP20/18 with further proposed consequential technical amendments to its rules to take effect on December 10, 2018. These further consequential changes are not intended to make any substantive change to the final policy and rules in PS26/18. A further policy statement containing the final rules following the consultation in CP20/18 will be published before the commencement of SM&CR.
Related Links
Effective Date: December 10, 2018
Keywords: Europe, UK, Insurance, Solvency II, SM&CR, Responses to Consultation, PS26/18, CP18/18, FCA, PRA
Previous Article
BCBS Issues Basel III Monitoring Updates for October 2018Related Articles
|
News
EBA Single Rulebook Q&A: Fourth Update for March 2019EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.
March 22, 2019
WebPage
Regulatory News
|
|
News
ECB Updates Validation Checks and List of Identifiers Under AnaCreditECB updated the AnaCredit validation checks (Version 1.4) and the list of national identifiers (version 2.4) for AnaCredit reporting.
March 21, 2019
WebPage
Regulatory News
|
|
News
BCBS Publishes Results of the Basel III Monitoring ExerciseBCBS published results of the Basel III monitoring exercise based on data as of June 30, 2018.
March 20, 2019
WebPage
Regulatory News
|
|
News
EBA, FCA, and PRA Agree on MoU Template for Supervisory CooperationEBA, FCA, and PRA announced that they have agreed on a template for the Memorandum of Understanding (MoU) that sets out the expectations for supervisory cooperation and information-sharing arrangements between UK and EU/European Economic Area national authorities.
March 20, 2019
WebPage
Regulatory News
|
|
News
HKMA Publishes CoP on Loss-Absorbing Capacity Requirements of BanksHKMA issued, in relation to the Financial Institutions Resolution (Loss-Absorbing Capacity Requirements—Banking Sector) Rules (LAC Rules) a chapter of a code of practice (LAC CoP) under section 196 of the Financial Institutions Resolution Ordinance (FIRO).
March 20, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Reports Monitoring the Implementation of Basel III in EUEBA published two reports measuring the impact of implementing the final Basel III reforms and monitoring the implementation of liquidity measures in EU.
March 20, 2019
WebPage
Regulatory News
|
|
News
BCBS Publishes Results of Survey on Proportionality in Bank RegulationBCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.
March 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy SwapsUS Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.
March 19, 2019
WebPage
Regulatory News
|
|
News
EBA Updates List of Other Systemically Important Institutions in EUEBA updated the 2018 list of other systemically important institutions (O-SIIs) in EU. The list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs.
March 19, 2019
WebPage
Regulatory News
|
|
News
HKMA Expects Banks to Manage Risks Related to Crypto-Asset ExposuresHKMA issued a statement announcing that it expects authorized institutions to take note of the BCBS statement on crypto-assets and its prudential expectations.
March 18, 2019
WebPage
Regulatory News
|
