Prudential Regulation Authority Rulebook

2.1

This Chapter does not apply to a firm referred to in Insurance General Application 2.1(2).

2.2

Without prejudice to the exclusion that applies to pure reinsurers referred to in Insurance General Application 2.2(7) and subject to 2.3, if a firm has on the Solvency II implementation date ceased to conduct new insurance business and does not have a Part 4A permission to effect contracts of insurance the Solvency II rules shall not apply to it until:

1. (1) unless (2) applies, the earlier of:
1. (a) 1 January 2019, where the firm has demonstrated to the PRA that it will terminate its activity before 1 January 2019; or
2. (b) the date upon which the PRA notifies the firm that the firm has not demonstrated to the PRA that sufficient progress has been made towards terminating the firm’s activity; or
2. (2) where the firm is subject to directive reorganisation measures and an administrator has been appointed, the earlier of:
1. (a) 1 January 2021; or
2. (b) the date upon which the PRA notifies the firm that the firm has not demonstrated to the PRA that sufficient progress has been made towards terminating the firm’s activity.

[Note: Art. 308b (1), (2) of the Solvency II Directive]

2.3

2.2 only applies:

1. (1) if the firm is not part of a group, unless all undertakings that are part of the group have ceased to conduct new insurance business;
2. (2) if the firm provides the PRA with an annual report setting out what progress has been made in terminating its activity; and
3. (3) after the firm has notified the PRA that it satisfies the requirements set out in 2.2.

[Note: Art. 308b (3) of the Solvency II Directive]