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Status: You are viewing the version of the handbook as on 2005-06-30.

PRU Sch 2 Notification requirements

PRU Sch 2.1G

1There are no notification requirements in PRU 1 or PRU 8. This Schedule does not cover any other chapter of PRU.21 The aim of the guidance in the following table is to give the reader a quick overall view of the relevant notification requirements.2

G

22 It is not a complete statement of those requirements and should not be relied on as if it were.

G

23 Table

2

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

PRU 2.1.38 R

Breach or expected breach of PRU 2.1.9 R

Fact of breach or expectation of breach

Breach or expectation of breach

Immediately

PRU 2.2.71 R

Intention to include any perpetual non-cumulative preference shares or innovative tier one instruments in the firm's tier one capital resources for the purposes of PRU 2.2

Fact of intention

Intention to include

At least one month before the firm first includes the relevant items in its tier one capital resources

PRU 2.2.72 R

Intention to redeem a tier one capital instrument that a firm has included in its tier one capital resources for the purpose of PRU 2.2

Fact of intention

Intention to redeem

At least one month before the intended redemption

PRU 2.2.116 R

Proposed amendment to the terms of the debt and the documents referred to in PRU 2.2.108R (8)

Details of the proposed amendment and confirmation that the legal opinions referred to in PRU 2.2.108R (11) and, if applicable, PRU 2.2.105 R and PRU 2.2.111 R, continue in full force and effect in relation to the terms of the debt and the documents notwithstanding any proposed amendment

Proposal to amend

At least one month before the amendment is due to take effect

PRU 2.2.117 R

Intention to repay a tier two instrument (unless the firm intends to repay an instrument on its contractual repayment date)

Fact of intention and details of how the firm will meet its capital resources requirement after such a repayment

Intention to repay

At least six months before the proposed date of repayment

PRU 3.2.23 R

That a reinsurance exposure to a reinsurer or group of closely related reinsurers is reasonably likely to exceed, or has exceeded, 100% of the firm'scapital resources excluding capital resources held to cover property-linked liabilities

Fact that the limit is reasonably likely to be, or has been, exceeded

Note: upon notification under PRU 3.2.23 R the firm must:

(1) demonstrate that prudent provision has been made for the reinsurance exposure in excess of the 100% limit, or explain why in the opinion if the firm no provision is required, and

(2) explain how the reinsurance exposure if being safely managed (see PRU 3.2.24 R

(1) A reasonable likelihood that the limit will be exceeded, or

(2) if (1) does not apply , the limit being exceeded

As soon as the firm first becomes aware of the matter required to be notified

PRU 3.2.29 R

That the firm has exceeded, or anticipates exceeding, the limit expressed in PRU 3.2.28 E (in each financial year a firm should restrict the gross earned premiums which it pays to a reinsurer or group of closely related reinsurers to the higher of (a) 20% of the firm's projected gross earned premiums for that financial year and (b) ?4 million)

Fact that the limit has been exceeded, or that the firm anticipates exceeding the limit

Note: upon notification under PRU 3.2.29 R the firm must explain to the FSA how, despite the excess reinsurance concentration, the credit risk is being safely managed (see PRU 3.2.30 R)

The limit being exceeded, or an anticipation that the limit will be exceeded

Immediately