Insurance - Fitness and Propriety

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm;
2. (2) in accordance with Insurance General Application 3, the Society, as modified by 5;
3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 5;
4. (4) a third country branch undertaking (other than a Swiss general insurer); and
5. (5) an ISPV.

2.1

A firm must ensure that all persons who perform key functions are at all times fit and proper persons.

[Note: Art. 42(1) of the Solvency II Directive]

2.2

In deciding whether a person is fit and proper pursuant to 2.1, a firm must be satisfied that the person:

1. (1) has the personal characteristics (including being of good repute and integrity);
2. (2) possesses the level of competence, knowledge and experience;
3. (3) has the qualifications; and
4. (4) has undergone or is undergoing all training,

required to enable such person to perform his or her key function effectively and in accordance with any relevant regulatory requirements, including those under the regulatory system, and to enable sound and prudent management of the firm.

[Note: Art. 42(1) of the Solvency II Directive]

2.3

Before deciding, and in considering on an on-going basis, whether a person is fit and proper pursuant to 2.1 and 2.2, a firm must consider the person’s past business conduct.

[Note: Art. 42(1) of the Solvency II Directive]

2.4

[Not yet in force]

2.5

[Not yet in force]

2.6

[Not yet in force]

2.7

[Not yet in force]

4.1

1. (1) A firm (other than a UK ISPV) shall notify the PRA of any changes to the identity of key function holders and shall provide the PRA with:
1. (a) all the information needed to assess whether such person is fit and proper pursuant to 2.2; and
2. (b) the information referred to in Insurance - Allocation of Responsibilities 5.1(3) in respect of that person.
2. (2) A UK ISPV shall notify the PRA of any changes to the identity of key function holders who are effectively running the firm and shall provide the PRA with all the information needed to assess whether such person is fit and proper pursuant to 2.2.
3. (3) [Not yet in force]

[Note: Art. 42(2) of the Solvency II Directive]

4.2

[Not yet in force]

4.3

If a firm becomes aware of information which would reasonably be expected to be material to the assessment of a current or former key function holder’s fitness and propriety under this Part, it must inform the PRA as soon as practicable.

[Note: Art. 42(3) of the Solvency II Directive]

4.4

Where a firm replaces a key function holder because the firm considers that that person is no longer fit and proper pursuant to 2.1 and 2.2, the firm must notify the PRA as soon as reasonably practicable.

[Note: Art. 42(3) of the Solvency II Directive]

5.1

This Part applies to the Society and managing agents separately.

6.1

[Not yet in force]