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Status: You are viewing the version of the handbook as on 2016-06-30.

IPRU-INV 4.4 FINANCIAL RESOURCE REQUIREMENTS

IPRU-INV 4.4.1DRP

The Society must maintain appropriate and effective arrangements to require members’ agents1 to meet and continue to meet financial resource requirements at least equivalent to the requirements set out in Lloyd's Capital and Solvency Requirements 2001, as they are in force immediately before commencement.

IPRU-INV 4.4.2DRP

The Society must give the FCA1 a report on each members’ agent's1 compliance with the financial resource requirements referred to in IPRU-INV 4.4.1D as at the end of each quarter (determined by reference to each underwriting agent's accounting reference date).

IPRU-INV 4.4.3DRP

The report referred to in IPRU-INV 4.4.2D must reach the FCA1 within two months of the end of the relevant quarter and must state:

  1. (1)

    whether the Society has any information indicating or tending to indicate that, during the quarter to which the report relates, the members’ agents1 failed to meet the financial resource requirements referred to in IPRU-INV 4.4.1D;

  2. (2)

    whether, at the end of the quarter to which the report relates, the members’ agents1 failed to meet the financial resource requirements referred to in IPRU-INV 4.4.1D; an

  3. (3)

    the nature and extent of any failure to comply reported under (1) or (2) and the actions taken or to be taken by the Society in response to this.

IPRU-INV 4.4.4DRP

In addition to the reports required under IPRU-INV 4.4.2D, the Society must give the FCA1 an annual report on each members’ agents1 compliance or non-compliance with financial resource requirements as at the end of that members’ agent's1 financial year.

IPRU-INV 4.4.5DRP

The report in IPRU-INV 4.4.4D must reach the FCA1 within seven months of that members’ agent's1 accounting reference date and must:

  1. (1)

    confirm that:

    1. (a)

      the Society has received from that members’ agent1 in respect of the financial year to which the report relates, all relevant attachments to the Annual Financial Return that the members’ agent1 is required to make to the Society under the requirements identified in IPRU-INV 4.4.1D;

    2. (b)

      that members’ agent1 met the applicable financial resource requirements at the end of the financial year to which the report relates; and

    3. (c)

      the Society is not aware of any matters likely to be of material concern to the FCA1 relating to that members' agent's 1compliance with financial resource requirements during the year to which the report relates, or arising from the attachments referred to in (a); or

  2. (2)

    if the Society is unable to give any of the confirmations required under IPRU-INV 4.4.5D (1)(a), (b) or (c), set out in each case the reasons why it is unable to give that confirmation.

IPRU-INV 4.4.5ADRP

The Society must submit the reports in IPRU-INV 4.4.2D to IPRU-INV 4.4.5D in accordance with the rules in SUP 16.3 (General provision on reporting).

IPRU-INV 4.4.6R

A members' adviser must comply with the requirements of IPRU-INV 3-60(3) and IPRU-INV 3-62.