This statement of policy applies to all PRA-authorised insurers (other than friendly societies) with a Part 4A permission, regardless of their size or location. It is also relevant to the Financial Services Compensation Scheme, policyholders, and counterparties of PRA-authorised insurers, including secured creditors. The proposals do not apply to the society incorporated by the Lloyds Act 1871 by the name of Lloyd’s (the Society) and affected market participants (as defined in the Glossary Part of the PRA Rulebook), or EEA insurers in contractual run-off in the UK.
The purpose of this statement of policy is to set out the approach and expectations of the Prudential Regulation Authority (PRA) in relation to consent and related processes under section 377C and 377G of the Financial Services and Markets Act 2000 (FSMA). Those provisions apply where certain parties apply to court for a write-down of an insurer’s liabilities pursuant to section 377A of FSMA.
The statement of policy sets out the approach and expectations of the PRA, with regard to:
- the giving of consent by the PRA (under section 377C of FSMA) to an application to court for a write-down order under section 377A of FSMA
- the giving of consent by the PRA to an application for the appointment of a person as write-down manager under section 377A of FSMA
This statement of policy is intended to contribute to securing an appropriate degree of protection for policyholders of a failed insurer by facilitating continuity of cover.