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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 4;
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 4;
  4. (4) a third country branch undertaking (other than a Swiss general insurer);
  5. (5) a UK ISPV; and
  6. (6) in relation to any of the foregoing firms, any person who is:
    1. (a) a Conduct Rules non-executive director;
    2. (b) an employee of a firm who is a key function holder;
    3. (c) a certification employee (other than a key function holder);
    4. (d) approved under section 59 of FSMA by either:
      1. (i) the PRA; or
      2. (ii) the FCA, in relation to a relevant senior management function;
    5. (e) an employee who should have been approved under section 59 of FSMA by either:
      1. (i) the PRA; or
      2. (ii) the FCA, in relation to a relevant senior management function; or
    6. (f) an employee who is performing a function that would have been a controlled function but for Insurance - Senior Management Functions 2.4.

1

Application and Definitions

1.1

10/12/2018

Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 4;
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 4;
  4. (4) a third country branch undertaking (other than a Swiss general insurer);
  5. (5) a UK ISPV; and
  6. (6) in relation to any of the foregoing firms, any person who is:
    1. (a) a Conduct Rules non-executive director;
    2. (b) an employee of a firm who is a key function holder;
    3. (c) a certification employee (other than a key function holder);
    4. (d) approved under section 59 of FSMA by either:
      1. (i) the PRA; or
      2. (ii) the FCA, in relation to a relevant senior management function;
    5. (e) an employee who should have been approved under section 59 of FSMA by either:
      1. (i) the PRA; or
      2. (ii) the FCA, in relation to a relevant senior management function; or
    6. (f) an employee who is performing a function that would have been a controlled function but for Insurance - Senior Management Functions 2.4.

1.2

10/12/2018

In this Part the following definition shall apply:

employee

has the meaning given in Insurance – Certification 1.3.

2

Scope of Conduct Standards

2.1

10/12/2018

If you are a natural person who is:

  1. (1) an employee of a firm who is a key function holder; or
  2. (2) approved under section 59 of FSMA by either:
    1. (a) the PRA; or
    2. (b) the FCA, in relation to a relevant senior management function,

you must comply at all times with all of the conduct standards.

2.1A

03/07/2017

If you are a Conduct Rules non-executive director, you must comply at all times with the conduct standards specified in 3.1 to 3.3, 3.7 and 3.8.

2.1B

10/12/2018

If you are an employee of a type specified in 1.1(6)(c), (e) or (f) you must comply at all times with the conduct standards specified in 3.1 to 3.3.

2.2

10/12/2018

firm must require:

  1. (1) any person performing a key function to observe the conduct standards specified in 3.1 to 3.3;
  2. (2) any key function holder (other than a notified non-executive director and an authorised UK representative) to observe the conduct standards specified in 3.4 to 3.8, in addition to complying with (1);
  3. (3) any notified non-executive director to observe the conduct standards specified in 3.7 and 3.8, in addition to complying with (1); and
  4. (4) an employee of a type specified in 1.1(6)(c), (e) or (f) to observe the conduct standards specified in 3.1 to 3.3

3

Conduct Standards

3.1

07/03/2016

Individual Conduct Standard 1: You must act with integrity.

3.2

07/03/2016

Individual Conduct Standard 2: You must act with due skill, care and diligence.

3.3

07/03/2016

Individual Conduct Standard 3: You must be open and co-operative with the FCA, the PRA and other regulators.

3.4

10/12/2018

Senior Manager Conduct Standard 1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

3.5

10/12/2018

Senior Manager Conduct Standard 2: You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

3.6

10/12/2018

Senior Manager Conduct Standard 3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

3.7

10/12/2018

Senior Manager Conduct Standard 4: You must disclose appropriately any information of which the FCA or the PRA would reasonably expect to have notice.

3.8

10/12/2018

Senior Manager Conduct Standard 5: When exercising your responsibilities, you must pay due regard to the interests of current and potential future policyholders in ensuring the provision by the firm of an appropriate degree of protection for their insured benefits.

4

Lloyd’s

4.1

07/03/2016

This Part applies to the Society and managing agents separately.