In this Policy Statement we report on the main issues arising from the following FCA consultation papers and publish final rules.
Why we are we issuing this Policy Statement
The rules cover two main issues. Firstly reforms to the Approved Persons Regime for firms to whom the PRA have applied the Solvency II regime. These rules represent an important part of our drive to improve standards of individual conduct across the financial services industry. The second area is a series of minor, consequential amendments across the FCA Handbook as a result of the changes in the accountability regime for banks and Solvency II firms.
The PS responds to the following consultations:
- CP14/25: Changes to the approved persons regime for Solvency II firms[1]
- CP15/5: Approach to non-executive directors in banking and Solvency II firms & Application of the presumption of responsibility to Senior Managers in banking firms[2]
- CP15/16: FCA and PRA: Changes to the approved persons regime for Solvency II firms: forms, consequential changes and transitional arrangements & FCA only: governance proposals and feedback to CP14/25[3]
Policy Statement 15/21[4] [PDF]
Who this is aimed at
This paper will be of interest to:
All firms to whom the PRA have applied the Solvency II regime, including Insurance Special Purpose Vehicles (ISPVs), the Society of Lloyd’s, managing agents and UK branches of foreign firms (FCA regulated branches of third-country firms and European Economic Area (EEA) firms), and approved persons within those firms.
It is unlikely to be of practical relevance to approved persons of appointed representatives of these firms, which are outside the scope of these reforms.
The amendments to the Handbook described in Chapter 7 affect all firms regulated under FSMA, but these are minor, consequential changes to enable the new accountability regime for banks, PRA designated investment firms and Solvency II firms.
Further information
Find out more about the senior managers and certification regime[5].