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Application provision

1.1 The changes to this rule are effective from 23:00 on 31/12/2020.

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, a managing agent, as modified by 5;
  4. (4) a third country branch undertaking (other than a Swiss general insurer) in relation to the activities of the third country branch that are subject to the regulatory system;
  5. (4A) a third country insurance services provider in relation to the activities carried out in the UK that are subject to the regulatory system; and
  6. (5) a UK ISPV, in accordance with 6.

1

Application and Definition

1.1

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

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, a managing agent, as modified by 5;
  4. (4) a third country branch undertaking (other than a Swiss general insurer) in relation to the activities of the third country branch that are subject to the regulatory system;
  5. (4A) a third country insurance services provider in relation to the activities carried out in the UK that are subject to the regulatory system; and
  6. (5) a UK ISPV, in accordance with 6.

1.1A

31/12/2020

This rule is effective from 23:00 on 31/12/2020.

This Part does not apply to a SRO firm.

1.2

10/12/2018

This Part does not apply to a small run-off firm

1.3

10/12/2018

In this Part, the following definition shall apply:

employee

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

1.3A

31/12/2020

This rule is effective from 23:00 on 31/12/2020.

For the purposes of this Part, large firm includes a third country insurance services provider which would be a large firm if the amounts specified in (a) and (b) of the Glossary definition are only those amounts relating to the activities carried out in the UK by the third country insurance services provider.

1.4

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

This Part does not apply to a function performed by:

  1. (1) a PRA approved person;
  2. (1A) a person in relation to whom a notice under section 59ZZA has been given to an authorised person;
  3. (2) a person who performs an FCA controlled function; or
  4. (3) a non-executive director in relation to their non-executive director function.

2

Certification Functions

2.1

10/12/2018

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.

2.2

10/12/2018

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

3

Performance of Certification Functions

3.1

10/12/2019

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.

3.2

10/12/2018

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

3.3

10/12/2018

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 is solely 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.

4

Material Risk Takers

4.1

10/12/2018

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

4.2

10/12/2018

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

4.3

10/12/2018

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

4.4

10/12/2018

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

5

Lloyd’s

5.1

10/12/2018

This Part applies to the Society and managing agents separately. 

6

UK ISPVs

6.1

10/12/2018

2.1(2) does not apply to a UK ISPV.

6.2

10/12/2018

4 does not apply to a UK ISPV.