The PRA is consulting on proposed changes to its approach to authorising and supervising insurance SPVs. The proposed changes include:
- changing the legal opinion expectation for non-English law governed contracts; and
- clarifying:
- the number of SMF holders needed for an insurance SPV;
- the approach to multiple cedants ceding risk to a single cell via a single contract;
- the interpretation of ‘quantifiable risk’; and
- the requirement for written policies submitted for ‘standard’ applications.
The consultation closes on 11 October 2022 and the PRA expects any resulting changes to be implemented by 30 November.