This consultation paper (CP) is of interest to all UK insurance firms within the scope of Solvency II, third country branches with a UK (re)insurance branch and to the Society of Lloyd’s and may be of general interest to firms not under the scope of the Solvency II Directive. It follows CP16/14: Transposition of Solvency II: Part 3 which made proposals for the transposition of the Solvency II Directive into the Prudential Regulation Authority (PRA) Rulebook.
Summary of the proposals covered by the CP
This CP consists of three elements:
- chapters 2–3 — two sets of proposed rules on the appointment of actuaries and schemes of operations to align the PRA Rulebook with the Solvency II Directive;
- chapter 4 — two national specific templates (NSTs) and accompanying minor consequential changes proposed to the rules in the Reporting Part of the PRA Rulebook as consulted on in CP16/14 which are relevant to the Society of Lloyd’s. NSTs address those areas which stem from specific national requirements which are not addressed in the set of Solvency II harmonised templates; and
- five draft supervisory statements which set out the PRA’s expectations of firms, and give further clarity, on:
Appendix 4 — regulatory reporting exemptions, mainly for PRA category 4 or 5 firms;
Appendix 5 — regulatory reporting, internal model outputs;
Appendix 6 — ORSA and the ultimate time horizon — non-life firms;
Appendix 7 — the quality of capital instruments; and
Appendix 8 — the treatment of pension scheme risk.
Appendix 9 details the national specific templates and LOG files.
This CP should be read alongside the relevant European legislation and previous consultations on Solvency II and relevant parts of the PRA Rulebook.
The PRA anticipates further changes to its Rulebook and the issue of further supervisory statements in order to implement Solvency II.
The PRA is required to transpose the Directive by Tuesday 31 March 2015 and the Solvency II regime will apply to all affected firms from 1 January 2016.
This consultation closed on Friday 30 January 2015.
Appendix 9: National specific templates, regulatory reporting templates and LOG files
The CP24/14 related documents have been updated following consultation. The new documents can be found on the Solvency II: regulatory reporting webpage.