On 15 February 2016, the PRA and the FCA published a Policy Statement which provides:
- feedback to the PRA and FCA October 2015 consultation on employment references for candidates applying for certain roles, including senior management functions (as reported in the 15 October 2015 issue of this briefing);
- feedback to the PRA and FCA November 2015 consultation on proposed changes to the Senior Insurance Managers Regime for Swiss general insurers; and
- the corresponding rules that have been made by the PRA, and the rules made by the FCA regarding Swiss general insurers.
The PRA’s rules will be implemented in two tranches. The first tranche of rules will apply from 7 March 2016 and will require PRA-regulated firms, when considering the appointment of an in-scope individual, to:
- provide a reference “as soon as reasonably practicable” upon another regulated firm’s request containing “all relevant information” of which it is aware; and
- take reasonable steps to obtain appropriate references covering at least the past 5 years of service from that individual’s current and previous employers, and from organisations at which that individual served as, or is currently, a non-executive director.
The second tranche will be issued as soon as possible and will cover areas where consultation feedback is still under consideration.
The FCA’s rules will be effective on 7 March 2016 save for the rules in relation to the grandfathering provisions for current approved persons that came into effect on 15 February 2016.