The Prudential Regulation Authority (PRA) will wield a veto power over proposed terminal or annual bonuses for with-profits policies, under the new regime.
From next year, both the Financial Conduct Authority (FCA) and the PRA will be involved in the regulation of with-profits firms. Speaking at the PRA Insurance Conference yesterday, Julian Adams, director of insurance at the Financial Services Authority (FSA), explained some of the PRA's powers. He said: "Where the solvency of the fund may be compromised to an extent that we believe challenges our prudential objectives, then the PRA will intervene in a decisive manner and has the ability to veto a proposed course of action on annual or terminal bonuses. "This might also apply to cas...
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