PRA Consults on Audit of Public Disclosure Requirement for Solvency II
PRA published the consultation paper CP8/18 related to the external audit of the public disclosure requirement under Solvency II. CP8/18 sets out the PRA proposal to amend the rule that requires the external audit of parts of the Solvency and Financial Condition Report (SFCR). PRA proposes that any amendments would be effective for financial years ending on, or after, November 15, 2018. Comments are requested by July 11, 2018.
SFCR is the key public disclosure under Solvency II and is intended to enhance transparency and comparability, through the disclosure of essential information on the solvency and financial condition of a firm. PRA estimates that the proposed amendments would remove the SFCR external audit requirement from the end of 2018, for more than 150 smaller UK Solvency II firms (including mutuals) and groups. PRA considers that this change would improve the proportionality of the requirement. PRA developed the proposals in CP8/18 as part of its work on reviewing aspects of the insurance prudential framework, in light of its experience following the implementation of Solvency II in the UK.
PRA first consulted on the requirement for elements of SFCR to be subject to external audit in CP43/15 and CP23/16. Then, it made the rule with effect for financial years ending on or after November 15, 2016. Following the implementation of the rule and the first year of public disclosure, PRA collected quantitative data from UK Solvency II firms on audit costs incurred and met with stakeholders such as audit firms, investors, insurers, and insurance trade bodies. In light of the findings, PRA made the proposals in CP8/18. CP8/18 is relevant for all UK Solvency II firms (including mutuals), auditors, and users of SFCRs.
Related Links
- Press Release
- CP8/18 (PDF)
- CP43/15 and CP23/16
- Series of Improvements to Implementation of Solvency II
Comment Due Date: July 11, 2018
Keywords: Europe, UK, Insurance, Solvency II, SFCR, External Audit, Public Disclosure Requirement, CP8/18, PRA
Previous Article
PRA Consults on Modeling of Volatility Adjustment for Solvency IIRelated Articles
|
News
FSB to Evaluate Effects of Too-Big-To-Fail Reforms for Systemic BanksFSB is seeking feedback as part of its evaluation of the effects of the too-big-to-fail reforms for banks.
May 23, 2019
WebPage
Regulatory News
|
|
News
APRA Releases Minor Changes to Reporting Standards on SA-CCR for BanksAPRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).
May 22, 2019
WebPage
Regulatory News
|
|
News
APRA on Industry Self-Assessments into Governance and AccountabilityAPRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).
May 22, 2019
WebPage
Regulatory News
|
|
News
PRA Consults on Maintenance of TMTP Under Solvency IIPRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II.
May 22, 2019
WebPage
Regulatory News
|
|
News
APRA Proposes to Amend Guidance on Residential Mortgage LendingAPRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.
May 21, 2019
WebPage
Regulatory News
|
|
News
IASB Proposes Improvements to IFRS 9 and IFRS 16IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases.
May 21, 2019
WebPage
Regulatory News
|
|
News
Denis Beau of BDF on Supervisory Priorities for Climate-Change RisksDenis Beau, the First Deputy Governor of BDF, delivered opening remarks at the BCBS-BSCEE-FSI High-level Meeting for Europe on banking supervision.
May 21, 2019
WebPage
Regulatory News
|
|
News
ISDA CDM to be Deployed for UK Digital Regulatory Reporting PilotISDA announced deployment of the ISDA Common Domain Model (ISDA CDM 2.0) to support the UK FCA, BoE, and participating financial institutions in testing phase two of the Digital Regulatory Reporting pilot for derivatives.
May 21, 2019
WebPage
Regulatory News
|
|
News
MAS to Consolidate Regulation of Merchant Banks Under Banking ActMAS published a consultation paper that proposes to consolidate the regulation of merchant banks under the Banking Act and to move merchant banks to a licensing regime under the MAS Act.
May 21, 2019
WebPage
Regulatory News
|
|
News
ESAs Amend Technical Standards on Mapping of ECAIs Under CRRESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).
May 20, 2019
WebPage
Regulatory News
|
