PRA Proposed Changes and Improvements to SIMR and SMR Forms
The PRA published a consultation paper that sets out proposed amendments and optimizations to the Senior Insurance Managers Regime (SIMR) (refer to Chapter 2). The paper includes a proposal to strengthen governance by requiring insurers to take steps to encourage board diversity (refer to Chapter 3). The paper also proposes consequential amendments to the Senior Managers Regime (SMR) forms, following the Policy Statement PS12/17 titled "Strengthening accountability in banking and insurance: amendments and optimizations" (refer to Chapter 4).
Chapters 2 and 3 of this consultation paper are relevant to all Solvency II insurance firms (that is, UK Solvency II firms, the Society of Lloyd’s and Lloyd’s managing agents, and third-country (re)insurance branches) and to large non-Directive firms (large NDFs). Chapter 4 of this paper is relevant to banks, building societies, credit unions, and PRA-designated investment firms. The consultation on the proposals in Chapters 2 and 3 closes on Friday, September 22, 2017 and consultation on Chapter 4 closes on Monday, August 14, 2017. The PRA intends to publish the final rules on the proposals in Chapters 2 and 3 in the fourth quarter of 2017 and proposes that rules would be implemented two months after their publication. The PRA intends to publish the final rules and forms for the proposals in Chapter 4 in the third quarter of 2017.
Related Link: PRA Notification
Comment Due Date: September 22, 2017
Keywords: PRA, Europe, UK, Insurance, Banking, Solvency II, SIMR, SMR
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