Part VII insurance business transfer schemes – guidance on the FCA’s approach
The Financial Conduct Authority is consulting on proposed guidance on its approach to reviewing insurance business transfer schemes under Part VII of the Financial Services and Markets Act 2000.
Although the Prudential Regulation Authority leads the Part VII process, the consultation highlights the FCA’s active role. For example, the FCA is entitled to be heard on an application to sanction a Part VII transfer and the views it gives to the Court are based on its assessment of the scheme against its own statutory objectives (in s.1(B) FSMA), which are distinct from the PRA’s objectives.
The proposed guidance is designed to help firms familiarise themselves with the FCA’s process and what information the FCA is likely to take into account when reviewing an application. It considers pre-application steps and the appointment of the Independent Expert, and it sets out the FCA’s overall approach, expectations and key considerations when reviewing the proposed transfer, as well as its expectations on specific aspects of key documentation.The consultation closes on 15 August 2017. The FCA expects to issue finalised guidance during the autumn of 2017.