The CBI has published a Policy Notice on the Fitness and Probity (F&P) Regime for (re)insurers under Solvency II. The notice sets out the changes to be made to the F&P regime as a consequence of Solvency II as well the CBI’s “Domestic Actuarial Regime”and related governance requirements.
The notice reiterates that all (re)insurers are required to have four key functions under Solvency II: Head of Compliance (PCF12); Head of Internal Audit (PCF13); Chief Risk Officer (PCF14) and Head of Actuarial Function (PCF48) (HoAF) with effect from 1 January 2016. IQs for function holders should be submitted to the CBI for approval by 15 November 2015. For further information on the process for approvals, firms are referred to section 8 of the “Guidance on Fitness and Probity Standards 2015”.
A summary of key requirements for outsourcing is included in the notice and the CBI confirms that outsourcing of activities is permitted under Solvency II with the exception of the role of HoAF for high impact institutions.
The amending Regulation, which will effect the transposition of Solvency II into national law and will be issued in advance of 1 January 2016, will update the F&P requirements set out in existing legislation. Provision will be made for the new HoAF and the removal of the existing roles of Chief Actuary and Signing Actuary. The CBI has also indicated that further guidance will be forthcoming in relation to the HoAF role.
A link to the Policy Notice is here.
A link to the Guidance on Fitness & Probity Standards is here.