Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a CRR firm;
2. (2) a UK Solvency II firm;
3. (3) in accordance with Insurance General Application 3, the Society, as modified by 3; and
4. (4) in accordance with Insurance General Application 3, managing agents, as modified by 3.

1.2

This Part does not apply to a firm which is a subsidiary undertaking of a UK parent undertaking where the parent undertaking complies at group level with Chapter 2 or with requirements implementing Article 39 of the Statutory Audit Directive and, where applicable, with Articles 11(1), 11(2) and 16(5) of the Statutory Audit Regulation, provided that:

1. (1) the firm is not significant; or
2. (2) if the firm is significant, its governing body is composed of the same non-executive directors as the governing body of that parent undertaking.

[Note: Art. 39(3)(a) (part) of the Statutory Audit Directive]

1.3

This Part applies to a firm in respect of financial years beginning on or after 17 June 2016.

1.4

In this Part, the following definitions shall apply:

aggregate accounts

means the aggregate accounts required to be prepared by the Council under regulation 18 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (SI 2008/1950).

Statutory Audit Directive

means Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC.

Statutory Audit Regulation

means Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC except that any reference to Article 16 of that Regulation, shall, where and to the extent that the effect of that Article has been reproduced in any of the following enactments in relation to a category of firm, be a reference to that enactment in relation to that category of firm:

1. (1) for private companies, sections 485A to 485C and 494ZA of the Companies Act 2006;
2. (2) for public companies, sections 489A to 489C and 494ZA of the Companies Act 2006;
3. (3) for building societies, paragraphs 3B to 3E of Schedule 11 to the Building Societies Act 1986;
4. (4) for friendly societies, paragraphs 2 to 5 of Schedule 14A to the Friendly Societies Act 1992;
5. (5) for limited liability partnerships, sections 485A to 485C and 494ZA of the Companies Act 2006 as applied by regulations 36 and 38A of the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008;
6. (6) for insurance undertakings within the meaning given by regulation 2 of The Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008, sections 485A to 485C and 494ZA of the Companies Act 2006 as applied by regulation 6(1A) of those Regulations.

syndicate statutory accounts

means the syndicate’s annual accounts and underwriting year accounts for a financial year prepared under regulations 5(2)(a) and 6(1) of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (SI 2008/1950).