The Prudential Regulation Authority (PRA) recently published a consultation paper relating to NDFs, which sets out proposals for new reporting rules with regard to the data items required under the “Insurance Company – Reporting” part of the PRA Rulebook, together with a draft supervisory statement (CP18/16). The proposals replace the rules currently in the PRA Handbook, consolidate and simplify reporting requirements, delete redundant requirements and make certain minor consequential amendments arising from changes to the prudential regime for NDFs.
CP18/16 seeks to update the current rules applying to NDFs, converting them to the Rulebook format by amending the reporting rules published in PS26/151 “The prudential regime, and implementation of the Senior Insurance Managers Regime, for non-Solvency II firms” and, rationalising and simplifying some of the requirements where possible and to introduce the new rules that the PRA had proposed to do so under CP27/153 “The prudential regime for non-Solvency II insurance firms and consequential amendments”.
The PRA proposes to consolidate the Handbook material from IPRU(INS) and IPRU(FSOC) into new or existing parts and aims to create two new Rulebook parts for the NDF sector with one relating to insurance company reporting and the other relating to friendly society reporting. The reason for the two separate parts is to reflect the current rules applicable to these two distinct types of NDFs. The proposed parts are not intended to represent a fundamental policy change.
The consultation will close on 13 June 2016 and the PRA plans to publish the final policy during the summer of 2016.