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:

continued approval

has the meaning given in Non-Solvency II Firms - Senior Insurance Managers Regime – Transitional Provisions.

2.1

A firm must ensure that all persons who perform a senior insurance management function are fit and proper persons.

2.2

In deciding whether a person is fit and proper pursuant to 2.1, a firm must be satisfied that the person:

1. (1) has the personal characteristics (including being of good repute and integrity);
2. (2) possesses the level of competence, knowledge and experience;
3. (3) has the qualifications; and
4. (4) has undergone or is undergoing all training,

required to enable such person to perform his or her senior insurance management function effectively and in accordance with any relevant regulatory requirements, including those under the regulatory system, and to enable sound and prudent management of the firm.

2.3

Before deciding, and in considering on an on-going basis, whether a person is fit and proper pursuant to 2.1 and 2.2, a firm must consider the person's past business conduct, including whether the person performs his or her senior insurance management functions in accordance with the relevant conduct standards specified in Non-Solvency II Firms - Conduct Standards 2.

2.4

In deciding whether a person (P) is fit and proper to perform a senior insurance management function, a firm must:

1. (1) obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under the Police Act 1997 and related subordinated legislation of the UK or any part of the UK;
2. (2) if P has lived or worked outside the UK for a material time in the previous six years, obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under equivalent overseas legislation; and
3. (3) request, and have regard to, such information.

2.5

If a firm previously obtained the information in 2.4 when it determined that a senior insurance management function holder was fit and proper in accordance with this Part, and the firm engages that person for a continuous period of time, the firm is not required to comply with 2.4 again in respect of any subsequent appointments at the same firm within that continuous period.

3.1

1. (1) If any PRA-authorised person (A):
1. (a) is considering issuing a certificate to, making a senior management application in respect of, or appointing as a senior insurance management function holder, a key function holder, a non-executive director, a notified non-executive director or a credit union non-executive director, a person (P);
2. (b) makes a request for a reference or other information in respect of P from a firm to which this Part applies (B), in B’s capacity as:
1. (i) P’s current or former employer; or
2. (ii) an organisation (not falling within (i)) at which P is currently serving, or has served, as a senior insurance management function holder, other approved person or non-executive director; and
3. (c) indicates to B the purpose of the request;
4. B must, as soon as reasonably practicable, provide a reference and disclose to A in the reference all information of which B is aware that B reasonably considers to be relevant to A’s assessment of whether P is fit and proper.
2. (2) A firm (B) which is required to make a disclosure under 3.1(1) is required to disclose information on or relating to something which occurred or existed:
1. (a) in the six years before the request for a reference;
2. (b) between the date of the request for a reference and the date B gives the reference; or
3. (c) in the case of serious matters, at any time.

3.2

A firm must not enter into any arrangements or agreements with any person that limit its ability to disclose information under this Part.

3.3

This Part does not require a firm to disclose information that has not been properly verified.

3.4

A firm does not breach the requirements of this Part by failing to include information in a reference that it would otherwise have to include if:

1. (1) the reason for the omission is that the firm does not have the necessary records; and
2. (2) no requirement of or under the regulatory system requires the firm to have those records.

4.1

A firm must ensure that any application it makes for the approval of a person to perform a senior insurance management function provides the PRA with:

1. (1) all the information needed to assess whether such person is fit and proper; and
2. (2) its record of the significant responsibilities allocated to that person.

4.2

If a firm becomes aware of information which would reasonably be expected to be material to the assessment of a current or former senior insurance management function holder’s fitness and propriety under this Part, it must inform the PRA as soon as practicable.

4.3

If a firm becomes aware of a significant change to a senior insurance management function holder’s responsibilities, it must inform the PRA as soon as practicable.

4.4

Where a firm replaces a senior insurance management function holder because the firm considers that that person no longer fulfils the requirements in 2.2, the firm must notify the PRA as soon as reasonably practicable.

5.1

The requirements of 2.4 do not apply to a firm in respect of any person who has continued approval in relation to that firm.