Significant changes in with-profits funds


Consistent with the Fundamental Rules, the PRA expects firms to inform their supervisors of any plans to make significant changes to the operation, management or business strategy of a with-profits fund, so that the PRA can take a view on the impact of those changes on the safety and soundness of the firm. This would include providing the PRA with appropriate advance notification of the following actions:

(a) ceasing to effect new contracts of insurance in a
with-profits fund;

(b) proposing changes to run-off plans for a closed with-profits fund;

(c) proposing a reattribution of inherited estates;

(d) proposing a demutualisation; and

(e) planning a Part VII transfer.


The above list is not intended to be exhaustive, and the PRA expects firms to engage in early dialogue with it, in addition to complying with any FCA requirements, in advance of any significant changes to the business or structure of a with-profits fund.