The PRA is consulting on changes to certain aspects in its approach to the authorisation and supervision of ISPVs, in the light of experience gained of operating the regime since its introduction. The proposed changes encompass amendments to Supervisory Statement 8/17 ‘Authorisation and supervision of insurance special purpose vehicles’, including:
- additional details added to the ‘documentation requirements’ subsection ;
- examples added to the ‘funding arrangements’ section to illustrate where there may be changes to the risk transferred and/or funding of the ISPV; and
- a new section added to chapter 3 to set out expectations on risk transfer arrangements.
Comments on this paper and its topics are requested by 3 December 2019.