18 October 2018

Bank of England: Strengthening accountability: Implementing the extension of the SM&CR to insurers

This PRA Policy Statement provides feedback to responses to its consultation on implementing the extension of the SM&CR to insurers. It also provides a rule instrument with amendments to the final rules on this issue.

This PS should be read in conjunction with PRA PS15/18 ‘Strengthening individual accountability in insurance: Extension of the SM&CR to insurers’, and Financial Conduct Authority (FCA) PS18/15 ‘Extending the Senior Managers and Certification Regime to insurers – Feedback to CP17/26 and CP17/41 and near final rules’, along with the proposals in PRA CP20/18 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers (Part 2)’.

The extension of the regime to insurers is being introduced by amendments to the Financial Services and Markets Act 2000 (FSMA) through the Bank of England and Financial Services Act 2016 (‘the 2016 Act’). The extended SM&CR for insurers will come into effect on Monday 10 December 2018, through the application of the Commencement regulations that have been published by HM Treasury for the relevant amendments to FSMA in the 2016 Act.

The final rules in this PS will apply with effect from Monday 10 December 2018.

Following the publication of the Commencement regulations by HM Treasury, the PRA published CP20/18 with some further proposed consequential technical amendments to its rules to take effect on Monday 10 December 2018.

These further consequential changes are not intended to make any substantive change to the final policy and rules in this PS. A further PS containing the final rules following the consultation in CP20/18 will be published before the commencement of the regime.

Policy statement

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