Glossary

key function

31/12/2020

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

(1) in relation to a UK Solvency II firm, the Society, a managing agent, a UK ISPV and a large non-directive insurer means each of the following in relation to the carrying on of a regulated activity by the firm:

(a) the risk-management function;

(b) the compliance function;

(c) the internal audit function;

(d) the actuarial function;

(e) the function of effectively running the firm; and

(f) any other function which is of specific importance to the sound and prudent management of the firm;

(2) in relation to a third country branch undertaking means, in relation to the carrying on of a regulated activity by the third country branch undertaking, each of the following functions performed in relation to the operations effected by the third country branch:

(a) the risk-management function;

(b) the compliance function;

(c) the internal audit function;

(d) the actuarial function;

(e) the function of effectively running the operations effected by the third country branch;

(f) the function of being the authorised UK representative; and

(g) any other function which is of specific importance to the sound and prudent management of the third country branch;

(3) in relation to a third country insurance service provider means, in relation to the carrying on of a regulated activity by the third country insurance services provider in the UK: 

(a) the risk-management function;

(b) the compliance function;

(c) the internal audit function;

(d) the actuarial function;

(e) the function of effectively running the operations effected by the third country insurance services provider; and

(f) any other function which is of specific importance to the sound and prudent management of the third country insurance services provider.