UK Regulators Finalize Rule Changes For Extending Individual Accountability Regime To Insurers

On July 4, 2018, the U.K. FCA and PRA published Policy Statements confirming the near-final and final rule changes they will apply to extend the application of the SM&CR to insurers. The Policy Statements do not make any changes to the prudential rules implementing Solvency II or to the wider U.K. regulatory framework for insurers.

The extended SM&CR will apply from December 10, 2018, subject to commencement regulations being made by HM Treasury. The SM&CR will apply to all insurers and reinsurers regulated by the FCA and the PRA. The Policy Statements will be of specific interest to Solvency II firms (that is, all firms within the scope of the U.K. rules implementing the Solvency II Directive), insurance special purpose vehicles (undertakings with permission to carry on the regulated activity of insurance risk transformation), insurers outside the scope of the Solvency II Directive (so-called Non-Directive Firms) and small run-off firms (all insurers with less than