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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 5;
  3. (3) in accordance with Insurance General Application 3, a managing agent, as modified by 5;
  4. (4) a third country branch undertaking (other than a Swiss general insurer) in relation to the activities of the third country branch that are subject to the regulatory system; and
  5. (5) a UK ISPV, in accordance with 6.

1

Application and Definition

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 5;
  3. (3) in accordance with Insurance General Application 3, a managing agent, as modified by 5;
  4. (4) a third country branch undertaking (other than a Swiss general insurer) in relation to the activities of the third country branch that are subject to the regulatory system; and
  5. (5) a UK ISPV, in accordance with 6.

1.2

10/12/2018

This Part does not apply to a small run-off firm

1.3

10/12/2018

In this Part, the following definition shall apply:

employee

in relation to a firm, includes any person within the description set out in section 63E(9) of FSMA.

1.4

10/12/2018

This Part does not apply to a function performed by:

  1. (1) a PRA approved person;
  2. (2) a person who performs an FCA controlled function; or
  3. (3) a non-executive director in relation to their non-executive director function.

2

Certification Functions

2.1

10/12/2018

For the purposes of this Part, the following are certification functions

  1. (1) a function performed for a firm by a key function holder at the firm;
  2. (2) a function performed by a material risk taker at a large firm.

2.2

10/12/2018

A function is only a certification function to the extent that the function relates to a regulated activity carried on by a firm.

3

Performance of Certification Functions

3.1

10/12/2018

[not used]

3.2

10/12/2018

A person does not perform a certification function for a firm under 2.1 if the person is performing any controlled function for that firm

3.3

10/12/2018

To the extent that:

  1. (1) a firm appoints a person to perform a function which, but for this rule, would be a certification function;
  2. (2) the appointment is solely to provide cover for a certification employee whose absence is reasonably unforeseen; and
  3. (3) the appointment is for less than four weeks;

such a person does not perform a certification function.

4

Material Risk Takers

4.1

10/12/2018

This Chapter applies to a firm that falls within 1.1 and is a large firm.

4.2

10/12/2018

A firm must identify, in respect of the firm, its employees who are material risk takers.

4.3

10/12/2018

A firm must keep its identification of material risk takers pursuant to 4.2 up-to-date.

4.4

10/12/2018

A firm must keep a record of its reasoning for the identification of material risk takers pursuant to 4.2.

5

Lloyd’s

5.1

10/12/2018

This Part applies to the Society and managing agents separately. 

6

UK ISPVs

6.1

10/12/2018

2.1(2) does not apply to a UK ISPV.

6.2

10/12/2018

4 does not apply to a UK ISPV.