Menu Close

PRA consultation CP19/19 Insurance SPVs authorisation and supervision

PRA consultation CP19/19: Insurance SPVs: Updates to authorisation and supervision

Background

  • CP 19/19: Insurance special purpose vehicles: Updates to authorisation and supervision
  • Published by the PRA on 3 September 2019
  • In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out some proposed updates to its approach and expectations in relation to the authorisation and supervision of insurance special purpose vehicles (ISPVs). The proposals would make amendments to the Insurance Special Purpose Vehicles Part of the PRA Rulebook (Appendix 1), including Supervisory Statement (SS) 8/17 ‘Authorisation and supervision of insurance special purpose vehicles’ (Appendix 2) and the Multi-arrangement insurance special purpose vehicle (MISPV) New Risk Assumption Notification Form (Appendix 3).

Impacts

  • The proposals in this CP aim to provide further clarity and elaborate on certain additional aspects of the PRA’s approach and expectations in relation to the authorisation and supervision of ISPVs.
  • The Solvency II requirements in relation to ISPVs have not changed during this period but the PRA and applicants have gained experience of operating the regime in practice. The PRA considers that it would be helpful to update SS8/17 to reflect the experience gained over this period.
  • The CP is relevant to parties who wish to apply for, or have obtained authorisation as, an ISPV. It is also relevant to insurers or reinsurers seeking to enter into arrangements with UK ISPVs as a form of risk mitigation.

Timeline with relevant dates to be logged on regulatory calendar

  • Consultation opens on 3 September 2019
  • Consultation closes on 3 December 2019

Next steps

Any respondents need to send comments to the PRA.