4

Time-limited approvals

12.

If a firm appoints an individual to perform a function which, in all other circumstances, would be an SMF subject to pre-approval by the PRA (PRA SMF); the appointment is solely to provide cover for an PRA SMF whose absence is temporary or reasonably unforeseen and the appointment will be for less than twelve weeks in a consecutive twelve-month period, that individual will not require pre-approval.[6]

Footnotes

  • 6. Senior Management Functions 2.3, Insurance – Senior Management Functions 2.4, Large Non-Solvency II Firms – Senior Management Functions 2.4, Non- Solvency II Firms – Senior Management Functions 2.3.

13.

However, as soon as it becomes apparent that the individual will be performing a PRA SMF for more than twelve weeks in a consecutive twelve-month period, the firm will be required to apply for pre-approval.

14.

Therefore, the use of time-limited approvals will only be applied to applications to perform an SMF on an interim, provisional or temporary basis for a period exceeding or likely to exceed twelve weeks in a consecutive twelve-month period.

15.

An example of where the PRA may approve an individual subject to a time-limit is where:

  • an SMF leaves a firm suddenly or unexpectedly;
  • the firm needs to fill the SMF vacancy immediately;
  • it is likely to take longer than twelve weeks to recruit a permanent replacement; and
  • there is an individual at the firm not currently approved to perform the relevant SMF, such as a deputy, who the firm and the PRA deem capable of fulfilling the role in an interim capacity but not necessarily on a permanent basis.

16.

There is no formal upper limit on the duration of time-limited approvals, which will be set on a case-by-case basis.