The PRA has fined Barents Reinsurance S.A., London Branch, £1.79m for controls, governance and reporting failures. The fine is the first that the PRA has taken against a firm operating solely as a reinsurer.
Barents is a Luxembourg-based reinsurer, operating in the UK since 2017 via a branch under the EU’s passporting arrangements, and subject upon Brexit to the UK’S Temporary Permissions Regime.
The PRA found that from July 2021 to October 2023, Barents had failed to:
- organise and control its affairs responsibly and effectively because it did not adequately prepare for the regulatory impact of the UK’s exit from the EU;
- maintain a system of governance proportionate to its operations;
- maintain business continuity plan that adequately took into account the UK business; and
- maintain appropriate systems and structures in place to fulfil its reporting requirements, leading to the late submission of certain required regulatory reports.
Due to Barents’ cooperation with the PRA’s investigation, the original fine of £2.55m was reduced.