The PRA has issued a update concerning regulatory references.
On 7 October 2015, the PRA and FCA jointly published Consultation Paper 36/15: Strengthening accountability in banking and insurance – regulatory references (CP36/15). In CP36/15 the regulators proposed requirements relating to the content and format of employment references for individuals subject to the Senior Managers’ and Certification Regimes; the Senior Insurance Managers’ Regime; key function holders and notified non-executive directors. The proposals covered banks, building societies, credit unions, PRA-designated investment firms, Solvency II and large non-Directive insurance firms. The deadline for comments on CP36/15 was 7 December 2015.
In the update now published the PRA states that it intends to issue:
- a first tranche of rules in mid – February 2016, which will apply from 7 March 2016; and
- as soon as possible with the FCA a second tranche of rules that will cover areas where consultation feedback indicated that there may be possible gaps.
The PRA’s mid – February rules will need to be read and applied in conjunction with the FCA’s equivalent requirements. It is intended that the regulators’ combined rules should provide an appropriate regime for regulatory references which will be supplemented where necessary in order to deal with any potential gaps.
View PRA update on regulatory references under the SMR and SIMR, 4 February 2016