Large Non-Solvency II Firms – Certification

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Application and Definition


Unless otherwise stated, this Part applies to:

  1. (1) a large non-directive insurer; and
  2. (2) a Swiss general insurer.


In this Part, the following definition shall apply:


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


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.


Certification Functions


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.


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


Performance of Certification Functions


A firm must take reasonable care to ensure that none of its employees performs a certification function under an arrangement entered into by the firm in relation to the carrying on by the firm of a regulated activity, unless the employee has a valid certificate issued by the firm.


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.


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 solely is 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.


Material Risk Takers


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


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


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


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