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Application provision

1.1 Unless otherwise stated, this Part applies to:



The certificate required by 2.7 must state:

  1. (1) that the return has been properly prepared in accordance with the requirements in the Non-Solvency II Firms sector of the PRA Rulebook; and
  2. (2) that the directors are satisfied that:
    1. (a) throughout the financial year in question, the firm has complied in all material respects with the rules in the Non-Solvency II Firms sector of the PRA Rulebook; and
    2. (b) it is reasonable to believe that the firm has continued so to comply subsequently, and will continue so to comply in the future.



A firm does not comply in all material respects with the requirements specified in 8.1(2) if it commits a breach of any of those rules which is significant, having regard to the potential financial loss to policyholders or to the firm, frequency of the breach, implications for the firm’s systems and controls and if there were any delays in identifying or rectifying the breach.



Subject to 8.4 and 8.5, if the firm carries on long-term insurance business, the certificate required by rule 2.7 must also state that:

  1. (1) in the directors’ opinion, premiums for contracts entered into during the financial year and the resulting income earned are sufficient, under reasonable actuarial methods and assumptions, and taking into account the other financial resources of the firm that are available for the purpose, to enable the firm to meet its obligations in respect of those contracts and, in particular, to establish adequate mathematical reserves;
  2. (2) the sum of the mathematical reserves and the deposits received from reinsurers as shown in Form 14 constitute proper provision at the end of the financial year in question for the long-term insurance liabilities (including all liabilities arising from deposit back arrangements, but excluding other liabilities which had fallen due before the end of the financial year) including any increase in those liabilities arising from a distribution of surplus as a result of an actuarial investigation as at that date into the financial condition of the long-term insurance business;
  3. (3) the with-profits fund has been managed in accordance with COBS 20.3 of the FCA Handbook; and
  4. (4) the directors have, in preparing the return, taken and paid due regard to:
    1. (a) advice from every actuary appointed by the firm to perform the actuarial function; and
    2. (b) if applicable, advice from every actuary appointed by the firm to perform the with-profits actuary function.



Where, in the opinion of those signing the certificate, the circumstances are such that any of the statements required by 8.1, 8.2 and 8.3 cannot truthfully be made, the relevant statements must be omitted.



Where, by virtue of 8.4, any statements have been omitted from the certificate, this fact, and the reasons for omission, must be set out in a note to the certificate.