This Supervisory Statement (SS) sets out the Prudential Regulation Authority’s (PRA’s) expectations of firms in accordance with the requirements under the Prudent Person Principle (PPP) under the Solvency II Directive regarding:
• their development and maintenance of an investment strategy;
• their management of risks arising from investments and their internal governance within the investment function; and
• their investment in assets not admitted to trading on a regulated market and intragroup loans and participations.
This SS is addressed to all UK Solvency II firms, including in the context of provisions relating to Solvency II groups, mutuals, third-country branches, the Society of Lloyd’s and its managing agents.