Prudential Regulation Authority Rulebook

2C.1

A UK ISPV must ensure that all persons who effectively run the UK ISPV shall at all times fulfil the requirements set out in Insurance – Fitness and Propriety 2.1, 2.2 and 2.3(1).

2C.2

A UK ISPV must notify the PRA of the identity of the persons who effectively run the UK ISPV and must be able to demonstrate to the PRA that those persons meet the requirements set out in Insurance – Fitness and Propriety 2.1, 2.2 and 2.3(1).

2C.3

A UK ISPV must notify the PRA of any changes in the identity of the persons who effectively run the UK ISPV and provide the PRA with all information needed to assess whether any new persons appointed to run the UK ISPV are fit and proper in accordance with the requirements in Insurance – Fitness and Propriety 2.1, 2.2 and 2.3(1).

2C.4

A UK ISPV must notify the PRA if any of the persons who effectively run a UK ISPV have been replaced because they no longer fulfil the requirements set out in Insurance – Fitness and Propriety 2.1, 2.2 and 2.3(1).

2C.5

A UK ISPV must take reasonable steps to keep under assessment whether shareholders or members having a qualifying holding in that UK ISPV are fit and proper, taking into account all of the following criteria:

1. (1) the reputation and integrity of the shareholder or member having a qualifying holding in the UK ISPV;
2. (2) the financial soundness of the shareholder or member having a qualifying holding in the UK ISPV;
3. (3) the level of influence that the shareholder or member having a qualifying holding in the UK ISPV will exercise over the UK ISPV; and
4. (4) whether there are reasonable grounds to suspect that, in connection with the qualifying holding of the shareholder or member having a qualifying holding in the UK ISPV, money laundering or terrorist financing within the meaning of regulation 3(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 is being or has been committed or attempted, or that the qualifying holding could increase that risk.

2C.6

A UK ISPV must notify the PRA of the identity of the persons who are its shareholders or members having a qualifying holding.

2C.7

A UK ISPV must notify the PRA as soon as it becomes aware that any shareholder or member having a qualifying holding may not be fit and proper, taking into account the criteria in 2C.5.

2C.8

A UK ISPV must have an effective system of governance which provides for the sound and prudent management of the UK ISPV and which is appropriate to the nature, scale and complexity of the risks it assumes and the regulated activity for which it is authorised.

2C.9

The system of governance of a UK ISPV must include:

1. (1) written policies:
   1. (a) in relation to at least risk management, internal control, administrative and accounting procedures and, where relevant, outsourcing;
   2. (b) including policies relating to the areas set out in Conditions Governing Business 3.1(2)(c) to the extent that these are relevant taking into account the regulated activity for which the UK ISPV is authorised;
2. (2) effective internal controls to ensure that the mandatory contract conditions in Chapter 2B and the requirements in 2.2 to 2.6 are fulfilled on an ongoing basis; and
3. (3) an effective risk-management system comprising processes and reporting procedures necessary to identify, measure, monitor, manage and report, on an ongoing basis the risks to which the UK ISPV could be exposed.

2C.10

A UK ISPV must ensure that the policies referred to in 2C.9(1) are implemented effectively.