Supplementary Information


The FCA is also likely to have an interest in proposals by insurance firms to make use of schemes, given the FCA’s consumer protection objective. In addition to discussing their proposals with the PRA, firms should discuss their proposed use of schemes separately with the FCA. The PRA would also expect to liaise directly with the FCA on any proposed scheme of arrangement.


The PRA has also produced a supervisory statement3 explaining the approach it takes to assessing proposals from general insurance firms in run-off to extract capital as a run-off progresses. Run-off firms are also encouraged to review that statement. Both statements address different issues but there is a common theme as both explain how the PRA intends to ensure that policyholders are appropriately protected where firms propose mechanisms which may accelerate the return of capital to shareholders.