The Prudential Regulation Authority (PRA) has written to regulated firms to update them on its approach to transfers of insurance business under Part VII of the Financial Services and Markets Act 2000.
The PRA has confirmed that it will continue to progress any transfer which has already been notified to it as long as the appropriate fee has been paid, the firm has expressed an intention to complete the transfer in 2015 and the transfer is on track to do so. However, the timetable for all other transfers will be based on the likelihood of the transfer completing by the end of 2015 and the impact of the transfer on the PRA’s statutory objectives.
The PRA has a number of substantial projects to deliver during 2015, including the implementation of Solvency II, and the announcement appears to be aimed at ensuring that sufficient resources are dedicated to all of its projects. A copy of the PRA’s letter to firms can be found at: http://www.bankofengland.co.uk/pra/Documents/about/praletter210115.pdf