The PRA has published the first set of final rules, implementing (a) the Senior Managers Regime (for banks and some other firms); and (b) the Senior Insurance Managers Regime for Solvency II insurers.
Our recent blog, summaring the scope and effect of the new regime, is here.
The PRA’s rather smartly titled “Policy Statement | PS3/15 – Strengthening individual accountability in banking and insurance — responses to CP14/14 and CP26/14” has three appendices.
The PRA Board Instrument in Appendix 1 (pages 19 to 42):
- Sets out the scope of the new Senior Managers Regime and the associated Certification Regime;
- Allocates Prescribed Responsibilities to Senior Managers; and
- Includes the new rules on the fitness and propriety of Senior Managers and certified employees.
These rules will come into force on 7 March 2016.
The PRA Board instruments in Appendices 2 and 3 (pages 43 to 63):
- Set out the scope of the Senior Insurance Managers Regime;
- Allocate Prescribed Responsibilities to these Senior Managers; and
- Include the new rules on the assessment of fitness and propriety of individuals by firms.
The rules in Appendix 2 “transpose, or are closely related to the implementation of Solvency II“; and will come into force on 1 January 2016. These rules will be replaced by the rules at Appendix 3 on 7 March 2016. The rules in Appendix 3 are “the first set of final rules for the [Senior Insurance Managers Regime], which deal with the changes to … FSMA … being made by the Banking Reform Act 2013, and introduce changes designed to align the SIMR with the SMR for banks“. There’s no apparent reason for supposing that these words have been chosen with the intention of upsetting UK (re)insurers. They may just have that effect.
The PRA will issue a further policy statement and further final rules and supervisory statements later this year.