Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to a small non-directive insurer.

1.2

In this Part, the following definitions shall apply:

FCA activities

means a function which would, except for SUP10A.11.12R of the FCA Handbook, be an FCA governing function.

Small Insurer Chief Actuary function

has the meaning given in 4.1.

Small Insurer Senior Management function

has the meaning given in 3.1.

Small Insurer With-Profits Actuary function

has the meaning given in 5.1.

2.1

Each of the functions in 3 to 5 is a controlled function and a senior insurance management function.

2.2

Senior insurance management function holders must be approved by the PRA to perform the applicable senior insurance management function.

2.3

To the extent that:

1. (1) a firm appoints a person to perform a function which, but for this rule, would be a senior insurance management function;
2. (2) the appointment is solely to provide cover for a senior insurance management function holder whose absence is:
1. (a) temporary; or
2. (b) reasonably unforeseen; and
3. (3) the appointment is for less than 12 weeks in a consecutive 12-month period,

the description of the applicable senior insurance management function does not relate to those activities of that person.

2.4

If, in relation to a firm:

1. (1) a senior insurance management function holder also performs FCA activities, performance of the senior insurance management function will include the performance of those FCA activities, provided the following conditions are met:
1. (a) the PRA’s approval to perform that senior insurance management function has been granted and continues in force;
2. (b) at the time of approval being granted by the PRA, that person was not subject to an FCA approval to perform the particular FCA governing function;
3. (c) the firm made the notification required by SUP10A.11.12R (4) of the FCA Handbook; and
4. (d) that person performs and is continuing to perform the FCA activities.
2. (2) a senior insurance management function holder has been performing FCA activities in the circumstances set out in (1), and that person:
1. (a) ceases to perform the senior insurance management function;
2. (b) within three months of ceasing performance, is approved to perform a new senior insurance management function at the firm; and
3. (c) continues to perform the FCA activities,

performance of the new senior insurance management function will include the performance of those FCA activities, provided the conditions in (1) (a) to (d) are met.

2.5

If a senior insurance management function holder to whom 2.4 applies ceases to perform a senior insurance management function but continues to perform the FCA activities, 2.4 will continue to apply in respect of the performance of the FCA activities until the earlier of:

1. (1) approval by the FCA in respect of the performance by that person of those FCA activities as an FCA governing function in relation to the firm; or
2. (2) three months from the time that the person ceased to perform that senior insurance management function.

3.1

The Small Insurer Senior Management function (SIMF 25) is the function of:

1. (1) having responsibility for the conduct of the regulated activities; or
2. (2) chairing the governing body,

of a small non-directive insurer.

3.2

1. (1) A firm must ensure that one or more persons performs the Small Insurer Senior Management function on its behalf.
2. (2) A firm must ensure that there is a person appointed to the Small Insurer Senior Management function who has ultimate responsibility for the conduct of its regulated activities.
3. (3) If a vacancy arises in respect of that aspect of the Small Insurer Senior Management function referred to in (2) above, a firm must ensure that it appoints a person to fill that vacancy as soon as practicable.

4.1

The Small Insurer Chief Actuary function (SIMF 20) is the function of having responsibility for the function specified in Non-Solvency II Firms – Actuarial Requirements 5.1 in relation to a small non-directive insurer.

5.1

The Small Insurer With-Profits Actuary function (SIMF 21) is the function of having responsibility for the function specified in Non-Solvency II Firms – Actuarial Requirements 6.1 in relation to a small non-directive insurer.