Large Non-Solvency II Firms – Conduct Standards

1.1

Unless otherwise stated, this Part applies to:

(1) a large non-directive insurer;

(2) a Swiss general insurer; and

(3) in relation to any of the foregoing firms, any person who is approved under section 59 of FSMA by either:

(a) the PRA; or

(b) the FCA, in relation to a relevant senior management function.

2.1

If you are a natural person subject to this Part, you must comply at all times with all of the conduct standards.

2.2

A firm must require:

1. (1) any person performing a key function to observe the conduct standards specified in 3.1 to 3.3;
2. (2) any key function holder (other than a notified non-executive director) to observe the conduct standards specified in 3.4 to 3.8, in addition to complying with (1); and
3. (3) any notified non-executive director to observe the conduct standards specified in 3.7 and 3.8, in addition to complying with (1).

3.1

Individual Conduct Standard 1: You must act with integrity.

3.2

Individual Conduct Standard 2: You must act with due skill, care and diligence.

3.3

Individual Conduct Standard 3: You must be open and co-operative with the FCA, the PRA and other regulators.

3.4

Senior Insurance Manager Conduct Standard 1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

3.5

Senior Insurance Manager Conduct Standard 2: You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

3.6

Senior Insurance Manager Conduct Standard 3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

3.7

Senior Insurance Manager Conduct Standard 4: You must disclose appropriately any information of which the FCA or the PRA would reasonably expect to have notice.

3.8

Senior Insurance Manager Conduct Standard 5: When exercising your responsibilities, you must pay due regard to the interests of current and potential future policyholders in ensuring the provision by the firm of an appropriate degree of protection for their insured benefits.