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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a firm that, on the effective date, has a Part 4A permission for effecting contracts of insurance or carrying out contracts of insurance and which will with effect from 1 January 2016 be:
    1. (a) a UK Solvency II firm;
    2. (b) a third country branch undertaking (other than a Swiss general insurer); or
    3. (c) a UK ISPV;
  2. (2) the Society, as modified by 9; and
  3. (3) managing agents, as modified by 9.

6.1

19/08/2015

The senior insurance management functions set out in column 2 of the table are specified as equivalent functions, in each case in relation to the pre-implementation controlled functions set out in the corresponding row in column 1 of the table below.

6.2

01/10/2015

The FCA functions set out in column 3 of the table are specified as equivalent functions, in each case in relation to the pre-implementation controlled functions set out in the corresponding row of column 1 of the table below.

Column 1Column 2Column 3
PRA or FCA Controlled FunctionPRA Senior Insurance Management FunctionFCA Function
All firms apart from third country branch undertakings and UK ISPVs
Director (CF1) Chief Finance function (SIMF2)
Chief Risk function (SIMF4)
Head of Internal Audit function (SIMF5)
Group Entity Senior Insurance Manager function (SIMF7)
Chief Actuary function (SIMF20)
Chief Underwriting Officer function (SIMF22)
Underwriting Risk Oversight function (SIMF23)
FCA Director function (CF1)
(see Note)
Non-executive director (CF2) Group Entity Senior Insurance Manager function (SIMF7)
Chairman function (SIMF9)
Chair of the Risk Committee function (SIMF10)
Chair of the Audit Committee function (SIMF11)
Chair of the Remuneration Committee function (SIMF12)
Senior Independent Director function (SIMF14)
Chair of the Nomination Committee function (CF2a)
Chair of the With-Profits Committee function (CF2b)
(see Note)
Chief executive (CF3) Chief Executive function (SIMF1)  
Director of unincorporated association (CF5) Chief Finance function (SIMF2)
Chief Risk function (SIMF4)
Head of Internal Audit function (SIMF5)
Group Entity Senior Insurance Manager function (SIMF7)
Chief Actuary function (SIMF20)
Chief Underwriting Officer function (SIMF22)
Chairman function (SIMF9)
Chair of the Risk Committee function (SIMF10)
Chair of the Audit Committee function (SIMF11)
Chair of the Remuneration Committee function (SIMF12)
Senior Independent Director function (SIMF14)
FCA Director of an unincorporated association function (CF5)
Chair of the Nomination Committee function (CF2a)
Chair of the With-Profits committee function (CF2b)
(See Note)
Actuary (CF12) Chief Actuary function (SIMF20)  
With-Profits Actuary (CF12A) With-Profits Actuary function (SIMF21)  
Lloyd’s Actuary (CF12B) Chief Actuary function (SIMF20)
Underwriting Risk Oversight function (SIMF23)
 
Systems and Controls (CF28) Chief Finance function (SIMF2)
Chief Risk function (SIMF4)
Head of Internal Audit function (SIMF5)
 
Significant management (CF29) Group Entity Senior Insurance Manager function (SIMF7)
Chief Actuary function (SIMF20) (general insurance firms only)
Chief Underwriting Officer function (SIMF22)
Underwriting Risk Oversight function (SIMF23)
 
UK ISPVs
PRA or FCA Controlled FunctionPRA Senior Insurance Management FunctionFCA Function
Director (CF1) Chief Finance function (SIMF2)
Chief Actuary function (SIMF20)
Group Entity Senior Insurance Manager function (SIMF7)
FCA Director function (CF1)
(see Note)
Non-executive director (CF2) Chairman function (SIMF 9) Chair of the Nomination Committee function (CF2a)
Chair of the With-Profits Committee function (CF2b)
(see Note)
Chief executive (CF3) Chief Executive function (SIMF1)  
Actuary (CF12) Chief Actuary function (SIMF20)  
Systems and Controls (CF28) Chief Finance function (SIMF2) FCA Systems and Controls function (CF28)
(see Note)
Significant management (CF29) Group Entity Senior Insurance Manager function (SIMF7)
Chief Actuary function (SIMF20) (general insurance firms only)
 
Third country branch undertakings
PRA or FCA Controlled FunctionPRA Senior Insurance Management FunctionFCA Function
Director (CF1) Chief Finance function (SIMF2)
Chief Risk function (SIMF4)
Head of Internal Audit function (SIMF5)
Group Entity Senior Manager (SIMF7)
Head of Third Country Branch function (SIMF19)
Chief Actuary function (SIMF20)
Chief Underwriting Officer function (SIMF22)
FCA Director function (CF1)
(see Note)
Non-executive director (CF2) Group Entity Senior Manager (SIMF7)
Chairman function (SIMF 9)
Senior Independent Director function (SIMF 14)
Chair of the Risk Committee function (SIMF 10)
Chair of the Audit Committee function (SIMF 11)
Chair of the Remuneration Committee function (SIMF 12)
 
Chief executive (CF3) Head of Third Country Branch function (SIMF19)  
Actuarial (CF 12) Chief Actuary function (SIMF20) Actuarial conduct function (third country) (CF 51) (conduct perspective only)
With-profits actuary (CF12A) With-Profits Actuary function (SIMF21)  
Systems and controls (CF28) Chief Finance function (SIMF2)
Chief Risk function (SIMF4)
Head of Internal Audit function (SIMF5)
FCA Systems and Controls function (CF28)
(see Note)
FCA Significant management (CF 29) Chief Underwriting Officer function (SIMF22)
Group Entity Senior Insurance Manager function (SIMF7)
 

Note: See SUP TP 7.2.3 R in the FCA Handbook.

6.3

19/08/2015

  1. (1) If, in relation to a firm, a senior insurance management function holder with continued approval also performs FCA activities on and from the commencement date, performance of the senior insurance management function will include the performance of those FCA activities provided that the firm has included details of the FCA activities in a scope of responsibilities form for that senior insurance management function holder which is provided to the PRA by 7 September 2016 in accordance with Key Function Holder – Notifications 6.3.
  2. (2) If, in relation to a firm, a senior insurance management function holder with continued approval has been performing FCA activities in the circumstances set out in (1), and that person:
    1. (a) ceases to perform the senior insurance management function;
    2. (b) within three months of ceasing performance, is approved to perform a new senior insurance management function at the firm; and
    3. (c) continues to perform the FCA activities,
  3.       performance of the new senior insurance management function will include the performance of those FCA activities, provided:
    1. (d) the PRA’s approval to perform that PRA’s continues in force;
    2. (e) the firm makes the notification required by SUP10A.11.12 R (4) of the FCA Handbook; and
    3. (f) that person performs and is continuing to perform the FCA activities.

6.4

19/08/2015

If a senior insurance management function holder to whom 6.3 applies ceases to perform a senior insurance management function but continues to perform the FCA activities6.3(1) will continue to apply in respect of the performance of the FCA activities until the earlier of:

  1. (1) approval by the FCA in respect of the performance by that person of those FCA activities as an FCA governing function in relation to the firm; or
  2. (2) three months from the time that the person ceased to perform that senior insurance management function.

6.5

19/08/2015

The PRA directs that a firm must not specify in the grandfathering notification that any person shall perform any combination of senior insurance management functions which is prohibited by any other provision of the PRA Rulebook or the FCA Handbook.