This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposed changes to the Solvency II reporting requirements and expectations. The PRA has developed these proposals in line with HM Treasury’s review of Solvency II, on which HM Treasury sought evidence between Monday 19 October 2020 and Friday 19 February 2021.
The proposals in this CP would result in changes to the following policy material:
- The onshored version of the Commission Implementing Regulation (EU) 2015/2450 Instrument 2021 (Appendix 1)
- Minimum Capital Requirement Part of the PRA Rulebook (Appendix 2)
- Supervisory Statements (SS) (Appendix 3 to 6):
- SS11/15 ‘Solvency II: Regulatory Reporting and exemptions’;
- SS40/15 ‘Solvency II: reporting and public disclosure options provided to supervisory authorities’;
- SS41/15 ‘Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines’; and
- SS44/15 ‘Solvency II: third-country insurance and pure reinsurance branches’.
- Statement of Policy (SoP) ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’ (Appendix 7)
The CP is relevant to all UK Solvency II firms, the Society of Lloyd’s and its managing agents, insurance and reinsurance undertakings that have a UK branch (third-country branch undertakings), and firms within the PRA’s Temporary Permissions Regime for (re)insurers.
The PRA proposes that the implementation date for the proposals set out in this CP would be for quarterly and annual reporting reference dates falling on and after Thursday 31 March 2022.
Responses and next steps
This consultation closes on Friday 8 October 2021. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP11_21@bankofengland.co.uk.
The proposals in this CP have been designed in the context of the UK having now left the EU and the transition period having come to an end. Unless otherwise stated, any references to EU or EU derived legislation refer to the version of that legislation which forms part of retained EU law.
These proposals should be read in conjunction with SS1/19 ‘Non-binding PRA materials: The PRA’s approach after the UK’s withdrawal from the EU’, SS2/19, and the SoP ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’. Firms within the PRA’s Temporary Permission Regimes for (re)insurers should read the proposals alongside the transitional relief that the PRA has granted as the end of the transition period.