Prudential Regulation Authority Rulebook

2.1

A firm must ensure that all persons who perform key functions are at all times fit and proper persons.

[Note: Art. 42(1) of the Solvency II Directive]

2.2

In deciding whether a person is fit and proper pursuant to 2.1, a firm must be satisfied that the person:

1. (1) has the personal characteristics (including being of good repute and integrity);
2. (2) possesses the level of competence, knowledge and experience;
3. (3) has the qualifications; and
4. (4) has undergone or is undergoing all training,

required to enable such person to perform his or her key function effectively and in accordance with any relevant regulatory requirements, including those under the regulatory system, and to enable sound and prudent management of the firm.

[Note: Art. 42(1) of the Solvency II Directive]

2.3

Before deciding, and in considering on an on-going basis, whether a person is fit and proper pursuant to 2.1 and 2.2, a firm must consider:

1. (1) the person’s past business conduct; and
2. (2) whether the person performs his or her key functions in accordance with the relevant conduct standards specified in Insurance - Conduct Standards 3.

[Note: Art. 42(1) of the Solvency II Directive]

2.4

In deciding whether a person (P) is fit and proper to be appointed as a senior insurance management function holder or a notified non-executive director, a firm must:

1. (1) obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under the Police Act 1997 and related subordinated legislation of the UK or any part of the UK;
2. (2) if P has lived or worked outside the UK for a material time in the previous six years, obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under equivalent overseas legislation; and
3. (3) request, and have regard to, such information.

2.5

Before deciding whether a person is fit and proper to be appointed as a senior insurance management function holder or a notified non-executive director, a firm must take reasonable steps to obtain appropriate references from that person’s current and previous employers, and from organisations at which that person served as, or is currently, a non-executive director, covering at least the past five years.

2.6

Where a firm (A) seeks a reference pursuant to 2.5 from an FCA-authorised person or a PRA-authorised person (B), A must also request that B discloses all matters of which B is aware that are relevant to the assessment of that person’s fitness and propriety.

2.7

If a firm engages a person for a continuous period of time as a senior insurance management function holder or a notified non-executive director it is only required to comply with 2.4 - 2.6 the first time it determines that person is fit and proper to act as a senior insurance management function holder or a notified non-executive director.