Featured Product

    PRA Issues CP18/18 on Implementing the Extension of SM&CR to Insurers

    July 31, 2018

    PRA published the consultation paper CP18/18, which sets out its proposed rules for a technical correction to the "Solvency II firms: Insurance General Application Part of the PRA Rulebook." CP18/18 also includes some consequential changes and minor administrative amendments related to the extension of the Senior Managers and Certification Regime (SM&CR) to insurers. Responses are requested by October 01, 2018.

    CP18/18 includes a proposal for a technical correction to rule 2.2 in the Solvency II firms: Insurance General Application Part of the PRA Rulebook. CP18/18 also includes proposals for technical changes to rules in the PRA Rulebook for the implementation of the SM&CR related to the following:

    • Application of an overlap rule for individuals with FCA responsibilities (as defined in the FCA Handbook)
    • Updates to the cross-references in the PRA Rulebook to the FCA Handbook
    • Transitional arrangements for widening of scope of the application of regulatory reference requirements
    • Deletion of certain previous transitional rules that are now obsolete
    • Other minor consequential amendments

    CP18/18 should be read in conjunction with the policy statements—PS15/18 of PRA and PS18/15 of FCA—on 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 from December 10, 2018, subject to commencement regulations to be made by HM Treasury for the relevant amendments to the FSMA in the 2016 Act. Thus, PRA proposes that the rule changes in CP18/18 will apply from December 10, 2018.

     

    Related Links

    Comment Due Date: October 01, 2018

    Keywords: Europe, UK, Insurance, Solvency II, SM&CR, Accountability, CP18/18, PS15/18, PS18/15, PRA

    Featured Experts
    Related Articles
    News

    BOE Article Explains Process for Bank Authorization in UK

    BoE published an article, in the Quarterly Bulletin for the third quarter of 2019, on how banks are authorized in the UK.

    September 20, 2019 WebPage Regulatory News
    News

    HKMA on Commencement of Regulatory Regime Under Insurance Ordinance

    HKMA announced the commencement of new licensing and regulatory regime for insurance intermediaries under the Insurance Ordinance from September 23, 2019.

    September 20, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    FCA Welcomes ISDA Protocol on Narrowly Tailored Credit Events

    FCA published an update to its initial joint statement with the U.S. SEC and CFTC on opportunistic strategies in the credit derivatives markets.

    September 19, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3853