Prudential Regulation Authority Rulebook

2.1

Each of the functions in 3 –10 is a controlled function and a senior insurance management function.

2.2

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

2.3

1. (1) A firm (other than a third country branch undertaking or a small run-off firm) must ensure that one or more persons performs each of the following senior insurance management functions on its behalf:
1. (a) the Chief Executive function;
2. (b) the Chief Finance function; and
3. (c) the Chairman function.
2. (2) If a vacancy arises in respect of one or more of the senior insurance management functions set out in (1), a firm must ensure that it appoints a person to fill that vacancy as soon as practicable.

2.4

To the extent that:

1. (1) a firm appoints a person to perform a key 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.

2.5

1. (1) If, in relation to a firm, 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.11.12 R (4) of the FCA Handbook; and
4. (d) that person performs and is continuing to perform the FCA activities.
2. (2) If, in relation to a firm, 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,
3. 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.

2.6

If a senior insurance management function holder to whom 2.5 applies ceases to perform a senior insurance management function but continues to perform the FCA activities, 2.5(1) 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.

2.7

If a firm that is not significant outsources its internal audit function to an external third party service provider (that is, a service provider outside the firm or the firm’s group), the firm is not required to have any person(s) approved to perform the Head of Internal Audit function.