Part

Non-Solvency II Firms - Allocation of Responsibilities

Printed on: 29/04/2024

Rulebook at: 10/12/2018

Related links

PS21/15 - The Senior Insurance Managers Regime: a streamlined approach for non-Solvency II firms https://www.bankofengland.co.uk/prudential-regulation/publication/2015/senior-insurance-managers-regime-a-streamlined-approach-for-non-solvency-2-firms
PS26/15 - "The prudential regime, and implementation of the Senior Insurance Managers Regime, for non-Solvency II firms" https://www.bankofengland.co.uk/prudential-regulation/publication/2015/prudential-regime-and-implementation-of-the-senior-insurance-managers-regime-for-non-solvency-2
PS26/18 - Strengthening accountability: Implementing the extension of the SM&CR to insurers https://www.bankofengland.co.uk/prudential-regulation/publication/2018/strengthening-accountability-implementing-the-extension-of-the-smcr-to-insurers
PS15/18 - Strengthening individual accountability in insurance: Extension of the Senior Managers and Certification Regime to insurers https://www.bankofengland.co.uk/prudential-regulation/publication/2018/strengthening-individual-accountability-in-insurance-extension-of-the-smcr-to-insurers
Legislation.gov.uk http://www.legislation.gov.uk/
Eur-Lex http://eur-lex.europa.eu/en/index.htm

Chapters

  • 1 Application and Definitions
  • 2 Allocation of Responsibilities
  • 3 Prescribed Responsibilities

1

Application and Definitions

1.1

Unless otherwise stated, this Part applies to a small non-directive insurer.

  • 07/03/2017

1.2

In this Part, the following definitions shall apply:

small non-directive insurer prescribed responsibility

means each of the responsibilities in 3.1.

  • 07/03/2017

2

Allocation of Responsibilities

2.1

A firm must allocate each of the small non-directive insurer prescribed responsibilities to one or more persons who, in relation to that firm, are approved under section 59 of FSMA by either:

  1. (1) the PRA; or
  2. (2) in relation to relevant senior management functions only, the FCA.
  • 07/03/2017

2.2

  1. (1) A firm must have and maintain up-to-date records of the significant responsibilities allocated to each of those persons, including those allocated in accordance with 2.1.
  2. (2) A firm must retain the records in (1) for six years from the date on which they were superseded by more up-to-date records.
  3. (3) A firm must comply with (2) in relation to any record created in accordance with SYSC 2.2.1R of the PRA Handbook as at 31 December 2015.
  • 07/03/2017

2.3

The firm must provide the PRA with a copy of the records in 2.2 upon request.

  • 07/03/2017

3

Prescribed Responsibilities

3.1

Each of the responsibilities set out in this rule is a small non-directive insurer prescribed responsibility:

  1. (A1) responsibility for the firm's performance of its obligations under the senior management regime (PR A);
  2. (A2) responsibility for the firm's performance of its obligations under the certification regime (PR B);
  3. (1) responsibility for providing the governing body with an up-to-date business plan and all relevant management information (PR T1);
  4. (2) responsibility for management of the firm's financial resources (PR CC);
  5. (3) responsibility for ensuring the governing body is kept informed of its legal and regulatory obligations (PR DD); and
  6. (4) responsibility for the oversight of systems and controls, along with risk management policies and procedures, that are proportionate to the nature, scale, and complexity of the risks inherent in the firm's business model (PR GG).
  • 10/12/2018