Large Non-Solvency II Firms – Certification

1.1

Unless otherwise stated, this Part applies to:

1. (1) a large non-directive insurer; and
2. (2) a Swiss general insurer.

1.2

In this Part, the following definition shall apply:

employee

in relation to a firm, includes any person within the description set out in section 63E(9) of FSMA.

1.3

This Part does not apply to a function performed by:

1. (1) a PRA approved person;
2. (2) a person who performs an FCA controlled function; or
3. (3) a non-executive director in relation to their non-executive director function.

2.1

For the purposes of this Part, the following are certification functions:

1. (1) a function performed for a firm by a key function holder at the firm;
2. (2) a function performed by a material risk taker at a large firm.

2.2

A function is only a certification function to the extent that the function relates to a regulated activity carried on by a firm.

3.1

A firm must take reasonable care to ensure that none of its employees performs a certification function under an arrangement entered into by the firm in relation to the carrying on by the firm of a regulated activity, unless the employee has a valid certificate issued by the firm.

3.2

A person does not perform a certification function for a firm under 2.1 if the person is performing any controlled function for that firm.

3.3

To the extent that:

1. (1) a firm appoints a person to perform a function which, but for this rule, would be a certification function;
2. (2) the appointment solely is to provide cover for a certification employee whose absence is reasonably unforeseen; and
3. (3) the appointment is for less than four weeks;

such a person does not perform a certification function.

4.1

This Chapter applies to a firm that falls within 1.1 and is a large firm.

4.2

A firm must identify, in respect of the firm, its employees who are material risk takers.

4.3

A firm must keep its identification of material risk takers pursuant to 4.2 up-to-date.

4.4

A firm must keep a record of its reasoning for the identification of material risk takers pursuant to 4.2.