On 17 September 2018, the Prudential Regulation Authority (PRA) published a consultation paper, CP20/18, which sets out proposed rules for some consequential changes, and minor administrative amendments, related to the extension of the senior managers and certification regime (SM&CR) to insurers.
The consultation paper includes proposals for some technical consequential changes relating to the "current approved person approval" status of those individuals who will be in a "designated senior management function" following the commencement of the extension of the SM&CR to insurers.
The extended SM&CR for insurers will come into effect from 10 December 2018. The PRA proposes that the rule changes in the consultation paper will therefore apply from the same date (other than one minor administrative change in annex H of the appendix which will apply from 1 January 2019).
The appendix to the consultation paper contains the draft Rulebook instrument, the PRA Rulebook: Solvency II Firms and Non Solvency II Firms: Senior Insurance Managers Regime (Amendment) (No 3) Instrument 2018.
Comments are requested by 17 October 2018, so that final rules can be made in advance of implementation in order to give firms and industry participants certainty on the technical details of the regime prior to its commencement on 10 December 2018.
The PRA has also published a related note on redesignation of senior insurance management functions (SIMF) to senior management functions (SMF), and the change-over to statements of responsibilities by insurers. The note gives the information that:
- on 10 December 2018 SIMFs will be automatically redesignated as SMFs and, where appropriate, the reference number for certain SIMFs will also change automatically;
- insurers will need to update their scope of responsibilities record to reflect the change to statement of responsibilities;
- firms do not need to submit an updated statement of responsibilities record to the PRA, but will be expected to have the updated statement of responsibility available should the relevant record be requested by the PRA as part of ongoing supervision.