First published on 1 June 2015
This supervisory statement is addressed to UK Solvency II firms and to Lloyd’s. It sets out the Prudential Regulation Authority’s (PRA’s) expectations of firms applying for permission to apply a volatility adjustment (VA). In particular, the statement clarifies:
- the items that should be included in an application to use the VA;
- how the PRA will use the content of applications to assess whether the statutory conditions for approval to use the VA have been satisfied; and
- how the VA approval process will work.