FCA proposes guidance on insurance Part VII transfers

FCA has issued guidance on its approach to reviewing insurance business transfers schemes under Part VII of the Financial Services and Markets Act 2000. While the PRA leads the Part VII process, the FCA also has a role.

  •  Chapter 2 – Sets out some initial considerations for firms before contacting the FCA and what firms will need to produce for any pre-application meeting.
  • Chapter 3 – Details the documents the FCA expects to receive and consider about the nomination and approval of the Independent Expert.
  • Chapter 4 – Sets out the FCA’s overall approach, expectations and key considerations when reviewing the proposed transfer.
  • Chapters 5 through 7 – Includes detailed information and examples for the key documentation – the Scheme documents, the IE report and Communications.
  • Chapter 8 – Sets out examples and factors for Applicants to consider if firms proposing a Part VII Transfer intend to make any applications for dispensations from the requirements in the Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001.

FCA anticipates as a high level estimate that the guidance may assist and reduce the compliance costs to firms for around 20 transactions a year and savings could be up to £50,000 per affected transaction.

FCA asks for comments by 15 August 2017.