This supervisory statement is relevant to firms in scope of Solvency II, including the Society of Lloyd’s, and the auditors of those firms.
The supervisory statement reminds the governing body of its responsibilities in respect of the ongoing appropriateness of the information disclosed, and that it must approve the Solvency and Financial Condition Report (SFCR). It also sets out the level of assurance expected with respect to the external audit requirement on the SFCR and the audit guidance that the PRA expects auditors to follow in auditing a firms’ SFCR. It should be read alongside the External Auditors Part of the PRA Rulebook.
The PRA has considered matters to which it is required to have regard, and it considers that this supervisory statement is compatible with the Regulatory Principles and relevant provisions of the Legislative and Regulatory Reform Act 2006. This supervisory statement is not expected to have any direct or indirect discriminatory impact under existing UK law.
The policy contained in this supervisory statement has been designed in the context of the current UK and EU regulatory framework. The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with the European Union take effect.