2017年-FCA英国金融行为监管局_changes_to_the_approved_persons_regime_for_solvency_ii_firms_final_rules_ps15_21_5页_158kb

Summary of Regulator Assessment: Qualifying Regulatory Provisions

Core Content

The document outlines the FCA's assessment of regulatory changes introduced in PS15/21: Changes to the Approved Persons Regime for Solvency II firms: Final rules (including feedback on CP14/25, CP15/5 and CP15/16). These changes were implemented as part of the UK's adaptation to the EU Solvency II Directive, with the commencement date set for 7 March 2016. The assessment is based on the Enterprise Act, which distinguishes between Qualifying Regulatory Provisions (QRPs) and Non-Qualifying Regulatory Provisions (NQRPs).

The changes aim to align the UK's regulatory framework with Solvency II and the Financial Services and Markets Act 2000 (FSMA), while also incorporating elements of the Senior Managers & Certification Regime (SM&CR). The lead regulator is the FCA, and the affected area is the whole of the UK.

Main Elements of the Proposed Changes

The following are the key elements of the changes to the Approved Persons Regime (APR):

1. Maintaining Controlled Functions

   • The FCA continues to require the pre-approval of certain Controlled Functions that the PRA proposed to stop approving, such as the Director function (CF1).
   • These functions are now classified as FCA-governing functions, meaning the FCA is the point of contact for pre-approval rather than the PRA.
   • This change is cost neutral for SII firms.

2. Governance Maps

   • SII firms must maintain governance maps that describe the management structure and allocation of responsibilities.
   • These maps are required to be updated regularly and are part of the Solvency II Directive (Article 258, 1i).
   • This is considered a Non-Qualifying Regulatory Provision (NQRP).

3. Scope of Responsibilities Documents

   • SII firms must create scope of responsibilities documents for all Significant Influence Functions (SIFs), including those who have been grandfathered into the new regime.
   • These documents must be available to the FCA upon request, but not submitted to the FCA.
   • This is a compliance requirement under Solvency II (Article 273, Chapter IX).

4. Record Keeping for 10 Years

   • SII firms are required to keep governance maps and scope of responsibilities documents for 10 years.
   • This is already in line with existing Solvency II requirements (Article 258, Chapter IX), so no additional cost is identified.

5. Applying Conduct Rules to Controlled Functions

   • Conduct rules from the Statement of Principles and Code of Practice (APER) are extended to Controlled Functions.
   • Two new Conduct Rules are introduced: Conduct Rule 4 (applicable to all approved persons) and Significant Influence Conduct Rule 3 (SI3) (applicable to SIF holders).
   • These rules set out basic conduct standards and are intended to improve individual accountability.

6. Removing Standard NEDs from Pre-Approval

   • Standard NEDs (those without specific roles) are no longer subject to regulatory pre-approval.
   • Only approved NEDs (such as Chairmen and Chairs of Committees) retain pre-approval.
   • This change is a cost saving for insurers under FCA rules, though PRA rules still require notification for NED appointments to ensure board fitness and propriety.

Key Information

• Business Impact: The changes primarily affect Solvency II firms.
• Estimated Number of Affected Firms: Approximately 600.
• Costs and Benefits:
  • Costs: Some changes are cost neutral or align with existing obligations, thus not qualifying as QRPs.
  • Benefits: The changes enhance transparency, governance, and individual accountability, while reducing regulatory burden for standard NEDs.

BIT Score Consideration

The BIT score is 0, indicating that the changes do not introduce new regulatory provisions that qualify under the Enterprise Act. The FCA has clarified that:

• The changes are aligned with Solvency II and FSMA.
• The governance maps and scope of responsibilities documents are Solvency II requirements, hence NQRPs.
• The removal of standard NEDs from pre-approval is a cost-saving measure, not a new regulatory requirement.
• The conduct rules are non-prescriptive, focusing on good conduct standards and are not new regulatory provisions.

Conclusion

The FCA's changes to the Approved Persons Regime for Solvency II firms are primarily compliance-oriented and aligned with EU obligations, with minimal new regulatory burden. These changes aim to ensure transparency, fitness and propriety, and individual accountability in the insurance sector, while also streamlining the regulatory process.