Occasional Consultation Paper

Consultation Paper 13/19
Published on 07 June 2019

Overview

This Consultation Paper (CP) proposes minor amendments to Prudential Regulation Authority (PRA) Rulebook Parts, supervisory statements (SSs), and the relevant templates and LOG files.

The chapters in this CP are relevant to different firms, as follows:

  • Chapter 2 – all UK insurance firms within the scope of Solvency II, the Society of Lloyd’s, and firms that are part of a Solvency II group that will determine and classify capital instruments under the Solvency II own funds regime, together with their advisors;
  • Chapter 3 – all insurance firms, insurance holding companies, and the Society of Lloyd’s;
  • Chapter 4 – UK banks and UK designated investment firms with Capital Requirements Regulation (CRR) Internal Model Approach (IMA) permissions; and
  • Chapter 5 – all Solvency II firms, including the Society of Lloyd’s. 

The chapters contained in this CP, the Rulebook Parts, SSs, and relevant templates and LOG files they propose to change, and the appendices containing the draft policy, are listed in the table below.

Chapter Rulebook Part/SS/ Template/LOG file
Appendix
2. Solvency II: The quality of capital instruments
SS3/15 ‘Solvency II: The quality of capital instruments’
1
3. Solvency II – minor updates to supervisory statements
SS8/14 ‘Subordinated guarantees and the quality of capital for insurers’
2
SS2/15 ‘Solvency II: Own funds’ 3
4. Regulatory Reporting – Discontinuation of FSA006
Reporting Part of the PRA Rulebook 
4
SS34/15 ‘Guidelines for completing regulatory reports’
5
5. National Specific Templates (NSTs), internal model output templates and associated LOG files – minor updates, corrections and clarifications
Reporting Part of the PRA Rulebook
6
SS25/15 ‘Solvency II: Regulatory reporting internal model outputs’
7
Draft updates to National Specific (NS.07) Template
8
Draft updates to National Specific (NS.08) Template
9
Draft updates to National Specific Templates LOG files
10

Draft updates to internal model output (IM.00) template

11
Draft updates to internal model output (IM.00) LOG file
12
Draft updates to internal model output (IM.03) template
13
Draft updates to internal model output (IM.03) LOG file
14

Responses and next steps

The consultation closed on Wednesday 7 August 2019.

The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to OCP.responses@bankofengland.co.uk.

During the consultation period, we will be issuing a Public Working Draft (PWD) of the taxonomy update to support collection of the proposed changes to National Specific Templates (NSTs), internal model output , market risk sensitivities (MRS) and standard formula (SF) reporting. The PWD will include the interaction of these changes with the draft EIOPA Taxonomy 2.4 changes. The PRA plans to give firms no less than three weeks to review the PWD. 

The proposals set out in chapters 2, 3 and 4 of this CP have been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the proposals will not be affected in the event that the UK leaves the EU with no implementation period in place.

As changes in Chapter 5 relate to reporting they should be read in conjunction with SS2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU’.

Implementation

Pending consideration of the responses to the consultation, the proposed implementation dates are: 

  • on publication of the final policy for chapters 2-4; and
  • on Saturday 30 November 2019 for Chapter 5. 

PDFConsultation Paper 13/19

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