Featured Product

    PRA Issues Policy Statement on Optimizations to the SIMR

    February 07, 2018

    PRA published the policy statement PS1/18, which provides feedback to responses to Chapters 2 and 3 of the consultation paper CP8/17 titled "strengthening individual accountability in banking and insurance: optimizations to the Senior Insurance Managers Regime (SIMR) and changes to forms." PS1/18 contains final rules amending the SIMR (Appendix 1) and the updated supervisory statement SS35/15 on strengthening individual accountability in insurance (Appendix 2). This version of SS35/15 takes effect from December 10, 2018, which is the date announced by HM Treasury for commencement of the extension of the Senior Managers and Certification Regime (SM&CR) for insurers.

    The updated SS35/15 also incorporates the changes that were proposed in CP14/17 to remove gender-based language and terminology from SS35/15. CP14/17 titled "strengthening individual accountability in insurance: extension of SM&CR to insurers" was published by PRA in July 2017. PRA has also updated SS35/15 to clarify its expectations on the implementation of the amendments to the SIMR, including the new Chief Operations function (SIMF24) and the new prescribed responsibility for the oversight of outsourced operational functions and activities.

    PS1/18 is relevant to all Solvency II insurance firms and to large non-Directive firms. PRA received seven responses to the proposals in Chapter 2 and seven responses to the proposals in Chapter 3 of CP8/17. In response to the consultation feedback, PRA has made a slight modification to the final rules related to the new Head of Large Business Area function (SIMF6), as proposed in CP8/17. Chapter 2 of PS1/18 summarizes feedback on the proposed optimizations to the SIMR and the final policy of PRA. Chapter 3 summarizes feedback on the PRA proposals for diversity at boards of insurers and the final policy of PRA. Chapter 4 sets out timelines for implementing the rules and expectations in PS1/18, which are summarized as follows:

    • The rule requiring insurers to have a diversity policy for their boards will become effective on April 09, 2018
    • The rules to implement the optimizations to the SIMR will become effective on December 10, 2018
    • Firms must submit the forms for the approval of individuals who will perform the Chief Operations function (SIMF24), or the Head of Large Business Area function (SIMF6), from December 10, 2018


    Related Links

    Effective Date: December 10, 2018 (SS35/15)

    Keywords: Europe, UK, Banking, Insurance, Solvency II, SIMR, PS1/18, SS35/15, CP8/17, PRA

    Featured Experts
    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4167