GENPRU — General Prudential sourcebook

Category: Compliance & AML · Reviewed by Amy Price, Account Executive · Last reviewed June 2026

The FCA Handbook sourcebook setting general prudential requirements for insurers and certain BIPRU investment firms, covering capital adequacy, valuation rules and prudential reporting.

Definition

GENPRU is the General Prudential sourcebook. It contains baseline prudential requirements that apply alongside the more specialised sourcebooks (INSPRU for insurers, BIPRU for the legacy investment firm regime). It covers capital resources, valuation of assets and liabilities, derivatives use, and the financial resources notification obligation.

Legal / Regulatory basis

GENPRU sits in the FCA Handbook (and was historically part of the integrated PRA-FCA Handbook before the 2013 split). It is made under FSMA sections 137A and 138. Solvency II — Directive 2009/138/EC, as retained and amended in UK law — substantially supersedes GENPRU for insurers, but GENPRU still applies to certain residual classes of firms and to the legacy BIPRU population pending full migration to the Investment Firms Prudential Regime (IFPR).

How it works in practice

For an insurance intermediary, GENPRU does not directly apply — MIPRU is the relevant prudential sourcebook. GENPRU matters when an authorised firm holds a wider permission set or sits in a group with an insurer. The structure runs GENPRU 1 (application and general provisions), GENPRU 2 (capital), GENPRU 3 (cross-sector groups). Capital is split into tier 1, tier 2 and (historically) tier 3 instruments with deductions for participations and intangible assets.

Common variations

For Solvency II firms, the Solvency II Directive and the FCA’s INSPRU/PRA SS rules now govern capital. For IFPR-eligible investment firms, MIFIDPRU has replaced much of BIPRU and the relevant GENPRU sections from 1 January 2022. Insurance Special Purpose Vehicles (ISPVs) have a separate regime.

Example

A pure general insurance broker reading its own permission set will see GENPRU only as a reference dependency in MIPRU 4 — for instance, the definition of “audited” in MIPRU 4.4 borrows from GENPRU. The intermediary need not file GENPRU returns and need not perform a GENPRU capital calculation.

See also

• MIPRU — Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries
• BIPRU — Prudential sourcebook for Banks, Building Societies and Investment Firms
• IPRU — Interim Prudential sourcebook
• Threshold Conditions

References

FCA Handbook, General Prudential sourcebook (GENPRU). Financial Services and Markets Act 2000, sections 137A and 138. Solvency II Directive (Directive 2009/138/EC) as retained in UK law. FCA Policy Statement PS21/17 (Implementation of the Investment Firms Prudential Regime).

Last reviewed

By Matt Bartlett, Director, on 2026-06-11.

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.