PS15/31: Final Rules on changes to the Approved Persons Regime for insurers not subject to Solvency II

In this policy statement we provide feedback on responses to CP15/25 ‘Changes to the Approved Persons Regime for insurers not subject to Solvency II’ (i.e. Non-Directive Firms or NDFs) and set out the final consequential changes to the Handbook.

Why are we issuing this policy statement?

As well as providing feedback on responses to CP15/25, we also set out the changes to forms necessary for the implementation of the reformed regime for all NDFs. We have previously consulted on changes to forms in CP15/25 and CP15/29.

We expect around 100 UK insurance firms to be classified as NDFs. Most of these firms are mutuals, and many of them are registered as friendly societies.

With the Bank of England and Financial Services Bill of October 2015, HM Treasury announced their intention to extend the Senior Managers & Certification Regime (SM&CR) for the banking sector to all FSMA authorised firms by 2018. This does not affect the implementation of the revised Approved Persons Regime (Senior Insurance Managers Regime) for insurers in 2016, but it does mean it will be replaced by the SM&CR eventually. The changes to the Approved Persons Regime for insurers will pave the way for the proposed application of the SM&CR to insurers that will result from the Bill.

Policy Statement 15/31 [PDF]

Who is this policy statement aimed at?

This policy statement affects all firms with permission to effect or carry out insurance contracts that fall outside of the scope of the Solvency II Directive (or of the Prudential Regulatory Authority rules imposing Solvency II requirements), and their approved persons. These changes are unlikely to be of practical relevance to approved persons of Appointed Representatives of these firms.

What are the next steps?

If your firm is affected by these changes, you will need to ensure that you are ready for their coming into force from 7 March 2016. Read our FCA Insurance Accountability pages for more details around timetable for NDFs.

Want to find out more?