We set out our expectations on the steps for firms to take to make sure conduct issues are properly considered in Part VII transfers.
Why we are changing
We are updating ‘FG18/4: The FCA’s approach to the review of Part VII insurance business transfers’. This is because:
- Stakeholders have requested clarity on certain points.
- The regulatory landscape has changed following the UK’s exit from the EU.
This guidance is designed to help with both the process and considerations of a Part VII transfer.
It aims to give examples of comments we have made or are likely to make to applicants and independent experts about their submissions on proposed Part VII transfers. We hope that this will help Applicants draft their proposals in ways that minimise challenge from us and lead to a more efficient review process.
This guidance will be of interest to:
- applicants and their professional advisors
- independent experts usually appointed by the applicants to report to the Court on the terms of the scheme
We issued FG18/4 in response to requests from industry practitioners to help them understand our approach and expectations to the Part VII process. The guidance also allowed firms to set budgets and timetables with greater certainty and less deviation.
Following this, we saw a noticeable improvement in the quality of submissions from firms and independent experts.
While FG18/4 was a major milestone in setting out our approach to reviewing Part VII transfers, external stakeholders needed clarity on certain points. This guidance gives our expectations on the steps for firms to take to make sure conduct issues are properly considered in Part VII transfers.