PS12/22 – Insurance special purpose vehicles: Further updates to authorisation and supervision
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1. Overview1.1 This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 10/22 – ‘Insurance special purpose vehicles: Further updates to authorisation and supervision’. It also contains the PRA’s final policy, as follows:updated Supervisory Statement (SS) 8/17 – ‘Authorisation and supervision of insurance special purpose vehicles’ (Appendix 1).1.2 This PS is relevant to firms who wish to apply for, or have obtained authorisation as, an insurance special purpose vehicle (ISPV). It is also relevant to insurers and reinsurers seeking to use UK ISPVs as risk mitigation in accordance with the UK’s onshored Solvency II framework. Background1.3 In CP10/22, the PRA proposed making changes to SS8/17 – ‘Authorisation and supervision of insurance special purpose vehicles’ that would:change the legal opinion expectation for non-English law governed contracts;clarify the number of Senior Management Function (SMF) holders needed for an...