The Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023

[F1 PART 3 U.K. Enforcement and review]

Textual Amendments

F1 Pt. 3 heading inserted (1.11.2024 for specified purposes and 31.12.20204 otherwise) by The Insurance and Reinsurance Undertakings (Prudential Requirements) (Amendment and Miscellaneous Provisions) Regulations 2024 (S.I. 2024/1083), regs. 1(2), 2(6)

PRA’s functions and powers under FSMA 2000 U.K.

8.—(1) FSMA 2000 applies in relation to regulations 5 (calculation of the matching adjustment) [F2 , 6 (calculation of fundamental spread) and 7B (risk margin)] with the modifications set out in paragraphs (2) to (8).

(2) Section 39(1) (exemption of appointed representatives) applies as if in subsection (4)—

(a) “or” at the end of paragraph (a) were omitted;

(b) after paragraph (a) there were inserted—

“(aa) regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023, or”.

(3) Section 66B(2) (misconduct: action by the PRA) applies as if in subsection (4)—

(a) “or” at the end of paragraph (a) were omitted;

(b) after paragraph (a) there were inserted—

“(aa) imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023, or”.

(4) Section 168(3) (appointment of persons to carry out investigations in particular cases) applies as if in subsection (4)—

(a) “or” at the end of paragraph (jc) were omitted;

(b) after paragraph (jc) there were inserted—

“(jd) an authorised person may have contravened regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023; or”.

(5) Section 204A(4) (meaning of “relevant requirement” and “appropriate regulator”) applies as if—

(a) in subsection (2)—

(i) “or” at the end of paragraph (c) were omitted;

(ii) “or” were inserted at the end of paragraph (d);

(iii) after paragraph (d) there were inserted—

“(e) by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023.”;

(b) in subsection (3), after paragraph (f) there were inserted—

“(g) a requirement under regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023.”.

(6) Section 380(5) (injunctions) applies as if—

(a) in subsection (6), in paragraph (a)—

(i) “or” at the end of sub-paragraph (v) were omitted;

(ii) “or” were inserted at the end of sub-paragraph (vi);

(iii) after sub-paragraph (vi) there were inserted—

“(vii) which is imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023,”;

(b) in subsection (8)—

(i) “or” at the end of paragraph (b) were omitted;

(ii) “or” were inserted at the end of paragraph (c);

(iii) after paragraph (c) there were inserted—

“(d) a requirement under regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements)) Regulations 2023.”.

(7) Section 382(6) (restitution orders) applies as if—

(a) in subsection (9), in paragraph (a)—

(i) “or” at the end of sub-paragraph (iii) were omitted;

(ii) “or” were inserted at the end of sub-paragraph (iv);

(iii) after sub-paragraph (iv) there were inserted—

“(v) which is imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023;”;

(b) in subsection (11)—

(i) “or” at the end of paragraph (b) were omitted;

(ii) “or” were inserted at the end of paragraph (c);

(iii) after paragraph (c) there were inserted—

“(d) a requirement which is imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023.”.

(8) Section 384(7) (power of FCA or PRA to require restitution) applies as if—

(a) in subsection (7)—

(i) “or” at the end of paragraph (c) were omitted;

(ii) “or” were inserted at the end of paragraph (d);

(iii) after paragraph (d) insert there were inserted—

“(e) a requirement which is imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023.”;

(b) in subsection (9)—

(i) “or” at the end of paragraph (b) were omitted;

(ii) “or” were inserted at the end of paragraph (c);

(iii) after paragraph (c) there were inserted—

“(d) a requirement which is imposed by regulation [F3 5, 6 or 7B] of the Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023.”.

Textual Amendments

F2 Words in reg. 8(1) substituted (1.11.2024 for specified purposes and 31.12.20204 otherwise) by The Insurance and Reinsurance Undertakings (Prudential Requirements) (Amendment and Miscellaneous Provisions) Regulations 2024 (S.I. 2024/1083), regs. 1(2), 2(7)(a)

F3 Words in reg. 8 substituted (1.11.2024 for specified purposes and 31.12.20204 otherwise) by The Insurance and Reinsurance Undertakings (Prudential Requirements) (Amendment and Miscellaneous Provisions) Regulations 2024 (S.I. 2024/1083), regs. 1(2), 2(7)(b)

Commencement Information

I1 Reg. 8 in force at 7.4.2024 for specified purposes, see reg. 1(2)

I2 Reg. 8 in force at 30.6.2024 in so far as not already in force, see reg. 1(2)

Review U.K.

9.—(1) The Treasury must from time to time—

(a) carry out a review of the regulatory provision contained in regulations 3 to 8, and

(b) publish a report setting out the conclusions of the review.

(2) The first report must be published before the end of the period of 5 years beginning with 1st April 2024.

(3) Subsequent reports must be published at intervals not exceeding 5 years.

(4) Each report must in particular—

(a) set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a),

(b) assess the extent to which those objectives are achieved,

(c) assess whether those objectives remain appropriate, and

(d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.

(5) In this regulation “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015(8) (duty to review regulatory provisions in secondary legislation) (see section 32 of that Act).

Commencement Information

I3 Reg. 9 in force at 7.4.2024 for specified purposes, see reg. 1(2)

I4 Reg. 9 in force at 30.6.2024, see reg. 1(2)

(1)

Subsection (4) was substituted by paragraph 5 of Schedule 18 to the Financial Services Act 2012 and amended by S.I. 2019/632.

(2)

Section 66B was inserted by section 32 of the Financial Services (Banking Reform) Act 2013 (c. 33) and subsection (4) was amended by S.I. 2019/632.

(3)

Subsection (4) was amended by S.I. 2017/1255. There are other amendments but none is relevant.

(4)

Section 204A was inserted by paragraph 10 of Part 4 of Schedule 9 to the Financial Services Act 2012 and amended by S.I. 2015/1864 and 2016/225. There are other amendments but none is relevant.

(5)

Section 380(6)(a) was amended by paragraph 19 of Part 5 of Schedule 9 to the Financial Services Act 2012 and S.I. 2016/225, and section 380(8) was inserted by paragraph 19 of Part 5 of Schedule 9 to the Financial Services Act 2012. There are other amendments but none is relevant.

(6)

Subsection (9) was amended by paragraph 21 of Part 5 of Schedule 9 to the Financial Services Act 2012. There are other amendments but none is relevant.

(7)

Subsection (7)(d) was inserted by paragraph 3(4) of Schedule 10 to the Financial Services (Banking Reform) Act 2013. Subsection (9) was inserted by paragraph 23 of Part 5 of Schedule 9 to the Financial Services Act 2012 and amended by S.I. 2019/632.

(8)

2015 c. 26.