This paper sets out the our revised approach to independent non-executive directors (NEDs) in UK banks, building societies, credit unions and PRA-designated investment firms (relevant authorised persons) and Solvency II firms.
The revised approach takes into account feedback to the consultation on Strengthening accountability in banking: a new regulatory framework for individuals, published in July 2014, which expressed concern about the proposed approach to NEDs under the SMR as set out in that CP. Under the revised approach the PRA and FCA will only make the following NEDs subject to approval and inclusion in the Senior Managers Regime (SMR) for relevant authorised persons:
For the FCA, this paper also consults on:
This paper affects relevant authorised persons and Solvency II firms.
This paper does not affect insurance firms that are not subject to the Solvency II directive (non-directive firms). It applies to UK branches of Solvency II firms that are headquartered overseas (incoming Solvency II branches) but not to UK branches of relevant authorised persons that are headquartered overseas (incoming relevant authorised person branches).
We want to know what you think of our proposals and welcome comments by 27 April 2015. Please send your responses to both regulators at the following addresses: CP7_15@bankofengland.gsi.gov.uk and firstname.lastname@example.org.
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