Transitional Provisions and Schedules
PRU Sch 1
Record keeping requirements
- 01/10/2005
PRU Sch 1.1
See Notes
- 1 The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.
- 2 It is not a complete statement of those requirements and should not be relied on as if it were.
- 3 Table
- 31/12/2004
See Notes
Handbook reference | Subject of Record | Contents of record | When record must be made | Retention period |
PRU 1.2.37 R, PRU 1.2.38 R | Firm's assessment of the adequacy of its financial resources | (1) The major sources of risk identified
in accordance with PRU 1.2.31 R (2) How the firm intends to deal with those risks (3) Details of the stress tests and scenario analyses carried out and the resulting financial resources estimated to be required in accordance with PRU 1.2.35 R | Not specified | At least 3 years |
PRU 1.4.53 R | Prudential risk management and systems and controls | Accounting and other records that are
sufficient to enable the firm to
demonstrate to the FSA: (1) that the firm is financially sound and has appropriate systems and controls; (2) the firm's financial position and exposure to risk (to a reasonable degree of accuracy); (3) the firm's compliance with the rules in PRU | Not specified | 3 years, or longer as appropriate |
PRU 7.3.20 R | Mathematical reserves | (1) The methods and assumptions used
in establishing the firm's mathematical reserves,
including the margins for adverse deviation, and the reasons for their use (2) The nature of, reasons for, and effect of, any change in approach, including the amount by which the change in approach increases or decreases its mathematical reserves | Not specified | An appropriate period |
PRU 7.4.17 R, PRU 7.4.19 R | Calculation of with-profits insurance capital component | (1) The methods and assumptions used
in making any calculation required for the purposes of PRU 7.4 (and any subsequent changes) and the reasons for their use (2) Any change in practice (in particular changes in those items which will or may be significant in relation to the eventual claim values) and the nature of, reasons for, and effect of, any change in approach with respect to those methods and assumptions | Not specified | An appropriate period |
PRU 7.6.23 R | Long-term insurance funds | A separate accounting record in respect of each of a firm's long-term insurance funds | Not specified | Not specified |
PRU 7.6.56 R, PRU 7.6.57 R | Branch accounting records in the United Kingdom | A record of the activities carried on
from a non-EEA direct
insurer's United
Kingdom branch and,
if it is an EEA-deposit
insurer, from its branches in
other EEA states including
a record of: (1) the income, expenditure and liabilities arising from activities of the branch or branches (2) the assets identified under PRU 7.2.20 R as available to meet those liabilities | Not specified | Not specified |
- 31/12/2004
PRU Sch 2
Notification requirements
- 01/10/2005
PRU Sch 2.1
See Notes
- 11/08/2004
See Notes
- 2 It is not a complete statement of those requirements and should not be relied on as if it were.
- 11/08/2004
See Notes
- 3 Table
- 11/08/2004
See Notes
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 3
Fees and other required payments
- 01/10/2005
Notification Requirements
PRU PRI Sch 3.1
See Notes
- 31/12/2004
PRU Sch 4
Powers exercised
- 01/10/2005
Powers Exercised
PRU Sch 4.1
See Notes
The following powers and related provisions in the Act have been exercised by the FSA to make the rules in PRU: | |
(1) | section 138 (General rule-making power); |
(2) | section 141 (Insurance business rules); |
(3) | section 149 (Evidential provisions); |
(4) | section 150(2) (Actions for damages); and |
(5) | section 156 (General supplementary powers). |
- 31/12/2004
PRU Sch 4.2
See Notes
- 31/12/2004
PRU Sch 5
Rights of action for damages
- 01/10/2005
Rights of action for damages
PRU Sch 5.1
See Notes
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. |
- 11/08/2004
PRU Sch 5.2
See Notes
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
See Notes
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
See Notes
Chapter/Appendix | Section/Annex | Rights of action under section 150 | |||
For private person | Removed | For other person | |||
All rules in PRU | No | Yes (PRU 1.8.1 R) | No |
- 11/08/2004
PRU Sch 6
Rules that can be waived
- 01/10/2005
Rules that can be waived
PRU Sch 6.1
See Notes
- 31/12/2004