PRA has published its feedback on responses to its consultation in CP 16/21 on insurance business transfers, and has published an updated Statement of Policy. There were not many respondents, and those who responded were mainly in favour of the changes, but were specifically concerns on:
- use of the s166 process for certain transfers to firms in run-off: PRA has clarified the various means by which it can satisfy itself that a s166 review is not required. It still believes there will be cases where a s166 is appropriate and considers it has set appropriate thresholds;
- guidance for independent experts: PRA has confirmed it does not consider it is expanding experts’ responsibilities and is merely providing additional guidance;
- document submission ahead of court hearings: PRA has acknowledged that the timelines it was proposing may not be workable and has amended its guidance; and
- PRA’s expectations for friendly societies.
The new SoP has immediate effect from 12 January.