Featured Product

    PRA Finalizes Policy on Group Own Funds Availability Under Solvency II

    April 30, 2020

    PRA finalized the policy statement PS10/20 on the approach to determination of the availability of subordinated liabilities and preference shares in group own funds under Solvency II. PS10/20 contains the final policy in an updated version of the supervisory statement SS9/15 on group supervision as well as the feedback to responses received to the consultation paper CP16/19. PS10/20 is relevant to all insurance firms within the scope of group supervision under the Solvency II Directive and to the Society of Lloyd’s. The final policy took effect on April 30, 2020, which is the publication date of PS10/20.

    SS9/15 sets out the expectations in respect of the Solvency II groups provisions. SS9/15 should be read in conjunction with the relevant European legislation, the Group Supervision Part of PRA Rulebook, the Solvency II Regulations 2015, and the PRA insurance approach document. The key changes in SS9/15 relate to Chapters 5A and 5B, which address availability of group own funds and regulatory determination on the availability of group own funds. Overall, the SS9/15 explains requirements regarding the following topics:

    • Entities excluded from the scope of group supervision
    • Choice of calculation method
    • Group capital add-on
    • Availability of group own funds and regulatory determination on the availability of group own funds
    • Single own risk and solvency assessment report
    • Single solvency and financial condition report
    • Responsibilities of the relevant insurance group undertaking
    • Supervision in the absence of third-country equivalence

    The policy set out in PS10/20 has been designed in the context of the UK’s withdrawal from the European Union and entry into the transition period, during which time the UK remains subject to European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with the European Union take effect.

     

    Related Links

    Effective Date: April 30, 2020

    Keywords: Europe, UK, Insurance, SS9/15, PS10/20, CP16/19, Solvency II, Group Supervision, PRA Rulebook, SFCR, SCR, Own Funds, PRA

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153