Permissions for transitional measures on technical provisions and risk-free interest rates

Statement of policy
Published on 28 February 2024

This statement of policy (SoP) sets out the PRA’s approach to granting regulatory permissions in relation to the transitional measure on technical provisions (TMTP) and the transitional measure on the risk-free interest rate (TMIR). It covers the PRA’s approach to considering when it would:

  • grant new permissions for firms to apply the TMTP;
  • revoke TMTP permissions; and 
  • modify certain TMTP rules, including by way of a variation of a firm’s TMTP permission.

The SoP should be of interest to all UK Solvency II firms, and the Society of Lloyd’s, and its members and managing agents, referred to collectively as ‘firms’. It is particularly relevant to firms with permission to apply the TMTP and TMIR, or those that may be acquiring business that benefits from TMTP.