The PRA has published Consultation Paper 4/15: Depositor, dormant account and policyholder protection – amendments (CP4/15).
In CP4/15 the PRA sets out proposals for transitional provisions and new rules in the PRA Rulebook and consequential amendments to the PRA Handbook that arise as a result of the rules being proposed in both the Depositor Protection and the Policyholder Protection consultation papers (CP20/14 and CP21/14) that were published in October 2014.
For depositor protection, the PRA proposes:
- transitional rules for single customer view (SCV), account marking and information requirements until rules proposed under CP20/14 come into effect;
- a supervisory statement setting out the PRA’s expectations around the marking of eligible accounts and deposits, the recast Deposit Guarantee Schemes Directive information requirements and SCV reporting during the transition period; and
- an approach in relation to the treatment of existing compensation sourcebook (COMP) rule waivers and modifications granted to firms in accordance with section 138A of the Financial Services and Markets Act 2000.
For dormant account protection, the PRA proposes:
- rules on compensation arrangements following a review of the existing PRA Handbook material in COMP and chapter 6 of the FEES manual (FEES 6);
- a statement of policy setting out the PRA’s expectations of the Financial Services Compensation Scheme (FSCS) with respect to the Dormant Account Scheme (DAS); and
- a supervisory statement setting out the PRA’s expectations of a dormant account fund operator with regards to the requirement to provide information to the FSCS.
For policyholder protection, the PRA proposes:
- the introduction of two new transitional rules which clarify: (i) what circumstances, actions and measures will continue to fall under the current COMP and FEES 6 rules; and (ii) from3 July 2015 what circumstances, actions and measures will fall under the new Policyholder Protection Part rules; and
- transposition of certain existing COMP and FEES 6 transitional provisions.
The PRA is also consulting on certain consequential amendments to the PRA Handbook relevant to deposit-takers and insurers.
The deadline for comments on CP4/15 is 27 February 2015.
View Depositor, dormant account and policyholder protection – amendments – CP4/15, 30 January 2015