Transitional Provisions and Schedules

Part

Integrated Prudential sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 09/12/2024

Rulebook at: 01/12/2004

Transitional Provisions and Schedules

PRU TP 1

Transitional Provisions

PRU TP 1.1

Transitional Provisions

(1)

(2)

(3)

(4)

(5)

(6)

Material to which the transitional provision applies

Transitional provision

Transitional provision: dates in force

Handbook provision: coming into force

PRU 9.2.7 R

(Requirement to hold professional indemnity insurance) does not apply in respect of acts or omissions occurring before:
(1) 31 October 2004 (in relation to mortgage mediation activity); and
(2) 14 January 2005 (in relation to insurance mediation activity).

From 31 October 2004

31 October 2004

PRU 9.3.53 R and PRU 9.3.57R (3)

A firm is not required to include goodwill in its intangible assets until 14 January 2008.

From 31 October 2004 until 14 January 2008

31 October 2004

, PRU 8.4, PRU 8.5, PRU 8 Ann 1R G, PRU 8 Ann 2R, PRU 8 Ann 3G G and, so far as it applies for the purposes of those provisions, the Glossary.

(1) References to the Financial Groups Directive Regulation have no effect.
(2) Any reference to notices served under regulation 2 of those Regulations is replaced by a reference to the corresponding notice under Article 4(2) of the Financial Groups Directive.

From the date on which the Handbook material to which those transitional provisions apply come into force until revoked.

The date in column (5) on which the corresponding transitional rule ceases to apply.

PRU TP 1.1 PRU 8.4, PRU 8.5, PRU 8 Ann 1, PRU 8 Ann 2, PRU 8 Ann 4 and, so far as it applies for the purposes of those provisions, the Glossary.

(1) References to the EEA are replaced by references to the European Union and so that in particular:
(a) an EEA State that is not a member of the European Union is treated in the same way as a state or territory that is neither an EEA State nor a member of the European Union;
(b) if:
(i) an EEA financial conglomerate; or
(ii) an EEA banking and investment group;
would come within the definition of third-country financial conglomerate or, as the case may be, third-country banking and investment group if the reference in those definitions to the EEA were replaced with a reference to the European Union, it must be treated as a third-country financial conglomerate or a third-country banking and investment group respectively; and
(c) the definition of competent authority is, for the purposes of the provisions in column (2), amended by replacing references to EEA States with ones to member states of the European Union.
(2) Paragraph 6.6 of PRU 8 Ann 1R G is amended so as to include the sectoral rules of an EEA State that is not a member of the European Union.

From the date on which the Handbook material to which it applies comes into force until the Financial Groups Directive is adopted by the EEA.

The date in column (5) on which the corresponding transitional rule ceases to apply.

01/12/2004

PRU Sch 2

Notification requirements

01/12/2004

PRU Sch 2.1

There are no notification requirements in PRU 1 or PRU 8. This Schedule does not cover any other chapter of PRU.1 The aim of the guidance in the following table is to give the reader a quick overall view of the relevant notification requirements.

11/08/2004

2 It is not a complete statement of those requirements and should not be relied on as if it were.

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3 Table

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Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

PRU 2.1.38 R

Breach or expected breach of PRU 2.1.9 R

Fact of breach or expectation of breach

Breach or expectation of breach

Immediately

PRU 2.2.71 R

Intention to include any perpetual non-cumulative preference shares or innovative tier one instruments in the firm's tier one capital resources for the purposes of PRU 2.2

Fact of intention

Intention to include

At least one month before the firm first includes the relevant items in its tier one capital resources

PRU 2.2.72 R

Intention to redeem a tier one capital instrument that a firm has included in its tier one capital resources for the purpose of PRU 2.2

Fact of intention

Intention to redeem

At least one month before the intended redemption

PRU 2.2.116 R

Proposed amendment to the terms of the debt and the documents referred to in PRU 2.2.108R (8)

Details of the proposed amendment and confirmation that the legal opinions referred to in PRU 2.2.108R (11) and, if applicable, PRU 2.2.105 R and PRU 2.2.111 R, continue in full force and effect in relation to the terms of the debt and the documents notwithstanding any proposed amendment

Proposal to amend

At least one month before the amendment is due to take effect

PRU 2.2.117 R

Intention to repay a tier two instrument (unless the firm intends to repay an instrument on its contractual repayment date)

Fact of intention and details of how the firm will meet its capital resources requirement after such a repayment

Intention to repay

At least six months before the proposed date of repayment

PRU 3.2.23 R

That a reinsurance exposure to a reinsurer or group of closely related reinsurers is reasonably likely to exceed, or has exceeded, 100% of the firm's capital resources excluding capital resources held to cover property-linked liabilities

Fact that the limit is reasonably likely to be, or has been, exceeded
Note: upon notification under PRU 3.2.23 R the firm must:
(1) demonstrate that prudent provision has been made for the reinsurance exposure in excess of the 100% limit, or explain why in the opinion if the firm no provision is required, and
(2) explain how the reinsurance exposure if being safely managed (see PRU 3.2.24 R

(1) A reasonable likelihood that the limit will be exceeded, or
(2) if (1) does not apply , the limit being exceeded

As soon as the firm first becomes aware of the matter required to be notified

PRU 3.2.29 R

That the firm has exceeded, or anticipates exceeding, the limit expressed in PRU 3.2.28 E (in each financial year a firm should restrict the gross earned premiums which it pays to a reinsurer or group of closely related reinsurers to the higher of (a) 20% of the firm's projected gross earned premiums for that financial year and (b) ?4 million)

Fact that the limit has been exceeded, or that the firm anticipates exceeding the limit
Note: upon notification under PRU 3.2.29 R the firm must explain to the FSA how, despite the excess reinsurance concentration, the credit risk is being safely managed (see PRU 3.2.30 R)

The limit being exceeded, or an anticipation that the limit will be exceeded

Immediately

11/08/2004

PRU Sch 5

Rights of action for damages

01/12/2004

Rights of action for damages

PRU Sch 5.1

The table below sets out the rules in PRU contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

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PRU Sch 5.2

If a "Yes" appears in the column headed "For private person", the rule may be actionable by a private person under section 150 (or, in certain circumstances, his fiduciary or representative; see article 6(2) and (3)(c) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256)). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

11/08/2004

PRU Sch 5.3

The column headed "For other person" indicates whether the rule may be actionable by a person other than a private person (or his fiduciary or representative) under article 6(2) and (3) of those Regulations. If so, an indication of the type of person by whom the rule may be actionable is given.

11/08/2004

PRU Sch 5.4

Chapter/Appendix

Section/Annex

Rights of action under section 150

For private person

Removed

For other person

All rules in PRU

Yes (PRU 1.8.1 R)

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