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Posted in Regulatory and legislative updates, UK

UK: Part VII insurance transfers of business: FCA publishes final guidance

Following a consultation from May to August 2017, the Financial Conduct Authority has issued its long awaited final guidance on its approach to the review of insurance business transfers under Part VII of the Financial Services and Markets Act 2000.  Although the Prudential Regulation Authority takes the lead on managing the process of a Part VII transfer, the FCA plays an active role in that process and must be consulted with by the PRA at all stages.   Last year, the FCA said that it had produced the draft guidance partly in response to requests from industry practitioners to help them understand the FCA’s particular approach and requirements which may be different to that of the PRA, as it has different regulatory objectives.  Also, to help applicants reduce costs by ensuring a smooth review process and avoiding additional work which would arise if the FCA rejected draft documents prepared by the applicant or independent expert.   This finalised guidance sets out the FCA’s  key considerations and general expectations when reviewing a Part VII Transfer.  Click here for our summary of the guidance.