Published on 9 November 2018
Introduction
This Prudential Regulation Authority (PRA) policy
statement (PS) provides feedback to responses to
Consultation Paper (CP) 20/18 ‘Strengthening
accountability: implementing the extension of the
SM&CR to insurers (Part 2)’. It also provides
the final set of rules for the implementation of
the extension of the Senior Managers and
Certification Regime (SM&CR, ‘the regime’) to
insurers.
This PS is relevant to all Solvency II insurance
firms (UK Solvency II firms, the Society of Lloyd’s
and managing agents, and third country
(re)insurance branches), and to insurance special
purpose vehicles (ISPVs), large non-Directive firms
(NDFs), small NDFs and Swiss general
insurers.
This PS should be read in conjunction with PRA
PS15/18 ‘Strengthening individual accountability in
insurance: Extension of the SM&CR to insurers’,
and PRA PS26/18 ‘Strengthening accountability:
implementing the extension of the SM&CR to
insurers’, along with Financial Conduct Authority
(FCA) PS18/15 ‘Extending the Senior Managers and
Certification Regime to insurers – Feedback to
CP17/26 and CP17/41 and near final rules’. The
FCA’s final rules for the implementation of the
SM&CR for insurers can be found in FCA Handbook
Notice 58.
The extension of the regime to insurers is being
introduced by amendments to the Financial Services
and Markets Act 2000 (FSMA) through the Bank of
England and Financial Services Act 2016 (‘the 2016
Act’). The extended SM&CR for insurers will
come into effect on Monday 10 December 2018,
through the application of the Commencement
regulations that have been published by HM Treasury
for the relevant amendments to FSMA in the 2016
Act.
Implementation
The final rules in this PS will apply with effect
from Monday 10 December 2018. This is the final PRA
PS on the extension of SM&CR to insurers before
the regime commences.
Responses to CP20/18
The PRA received no responses to CP20/18, and has
made no changes to the rules as consulted on in
CP20/18.
Policy Statement
27/18
