Prudential Regulation Authority Rulebook

1.1

This Part applies:

1. (1) to a small non-directive insurer; and
2. (2) in relation to a small non-directive insurer, to any person who is:
1. (a) a Conduct Rules non-executive director;
2. (b) approved under section 59 of FSMA by either:
1. (i) the PRA; or
2. (ii) the FCA, in relation to a relevant senior management function;
3. (c) a certification employee;
4. (d) an employee who should have been approved under section 59 of FSMA by either:
1. (i) the PRA; or
2. (ii) the FCA, in relation to a relevant senior management function; or
5. (e) an employee who is performing a function that would have been a controlled function but for Non-Solvency II Firms – Senior Management Functions 2.3.

1.2

In this Part the following definition shall apply:

employee

has the meaning given in Non-solvency II Firms – Certification 1.2.

1A.1

If you are a natural person who is approved under section 59 of FSMA by either:

1. (1) the PRA; or
2. (2) the FCA, in relation to a relevant senior management function,

you must comply at all times with all of the conduct standards.

1A.2

If you are a Conduct Rules non-executive director, you must comply at all times with the conduct standards specified in 2.1 to 2.3, 2.7 and 2.8.

1A.3

If you are an employee of a type specified in 1.1(2)(c), 1.1(2)(d) or 1.1(2)(e) you must comply at all times with the conduct standards specified in 2.1 to to 2.3.

1A.4

A firm must require:

1. (1) a natural person of a type specified in 1.1(2)(b) to observe all of the conduct standards; and
2. (2) an employee of a type specified in 1.1(2)(c), 1.1(2)(d) or 1.1(2)(e) to observe the conduct standards specified in 2.1 to 2.3.

2.1

Conduct Standard 1: You must act with integrity.

2.2

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

2.3

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

2.4

Conduct Standard 4: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

2.5

Conduct Standard 5: 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.

2.6

Conduct Standard 6: 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.

2.7

Conduct Standard 7: You must disclose appropriately any information of which the FCA or the PRA would reasonably expect to have notice.

2.8

Conduct Standard 8: 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.