On 25 September Dr Mark Carney, the Governor of the Bank of England, announced in a speech at the Institute & Faculty of Actuaries, that the PRA is in the process of developing a senior managers regime for insurance companies and will consult on the regime later this year. Dr Carney’s speech contained only a few details about how the regime will apply to insurers:
- the regime will not be the same as the regime for banks, for example, there will be no statutory provision for applying the “reverse burden of proof”;
- the regime will apply to senior actuaries of both life and non-life insurance companies, as well as CEOs, chairmen, chief financial and risk operators.
Secondary legislation to amend the Financial Services (Banking Reform) Act 2013 will be needed in order to extend the senior managers regime to insurance companies. Details of the senior managers regime, as it applies to banks and investment firms, are set out in our blog dated 21 August 2014.