Update 30 September 2019: This SS was updated following publication of Policy Statement 21/19 ‘Responses to CP13/19 Occasional Consultation Paper’.
This supervisory statement is addressed to UK Solvency II firms and to Lloyd’s, whether they are assessing the quality of their existing own funds and/or intending to issue new own fund items under Solvency II. This statement should be read alongside all relevant European legislation as well as the Own Funds Part of the Prudential Regulation Authority (PRA) Rulebook.
This statement sets out the PRA’s expectations of firms in relation to own funds on:
- ancillary own funds and Article 96 of the Solvency II Directive;
- the transitional measures for own funds;
- the right to cancel (or defer) dividends or other distributions; and
- pre-issuance notification.