Overview and Purpose
The purpose of the engagement is to enable the PRA to work with industry via subject expert groups (SEGs) to gather a broad range of information on and options for the development of the new supervisory measures announced by HM Treasury in their Solvency II Review consultation response, as part of the Autumn Statement in November 2022.
As of March 2023, three SEGs have been established on the following areas of reform relating to the matching adjustment (MA) and the new supervisory measures:
- matching adjustment (MA) investment flexibility;
- notching; and
- stress testing
The Terms of Reference for the engagement is linked below. Other relevant aspects of reform which may require industry engagement will be initiated as appropriate in due course, and the Terms of Reference will be updated as necessary.
It is important to note that final regulatory reforms will be determined by the PRA in accordance with its statutory objectives and ‘have regards’. The PRA will seek the views of the wider industry and other interested parties through normal public consultation processes.