Threadneedle Street regime for non-exec directors will be published later this year
The Prudential Regulation Authority has unveiled details of its new accountability regime for managers at big insurance companies.
The Bank of England’s prudential watchdog has published the rules for the Senior Insurance Managers Regime (SIRM), which will apply to all insurers that come under the wing of the Solvency II regime.
The rules, which set out the scope of the new regime, will come into force on 7 March 2016, although some aspects of the SIRM will apply from the beginning of next year, when the Solvency II rules bite.
The rules cover how firms should allocate responsibilities to individuals and they individuals’ fitness and propriety should be assessed.
Outstanding elements of the two regimes, including those parts that need to be finalised in conjunction with the Financial Conduct Authority, will be published later in the year. These will include how the SIRM will apply to non-executive directors.
The SIRM rules are being published in conjunction with those for the Senior Managers Regime, which applies to banks and building societies.
Andrew Bailey (pictured), Deputy Governor, Prudential Regulation, Bank of England described the publication of the rules as a “major milestone” in implementing the new accountability regimes for banks and insurers.
Bailey, who is also chief executive officer of the PRA, said: “We believe that individuals in firms should be held accountable if they fail to meet reasonable standards. The new regimes should not deter individuals from performing a senior role; rather they will ensure that people know what they need to do to demonstrate to us that they have assumed the appropriate responsibility to their role and taken all reasonable steps to mitigate or stop failings in their area.”