PRA Finalizes Approach to Publishing Solvency II Technical Information
PRA published the policy statement PS24/20 on the approach for publication of Solvency II technical information at the end of the transition period for Brexit. PRA has retained the methodologies and judgments that EIOPA incorporates in its technical information as at the end of the transition period, with certain exceptions. PS24/20 contains the Statement of Policy explaining the ways in which PRA will fulfill its obligations to publish the technical information necessary for valuation of insurance liabilities for each relevant currency. PS24/20 also presents feedback on the responses received to CP5/20. PS24/20 will come into effect on December 31, 2020, when the transition period for Brexit ends.
PRA had received four responses to the consultation on its approach to the publication of Solvency II information. During the consultation, respondents raised a range of operational concerns with the proposed implementation and publication dates for the technical information. Responses included several requests for clarification, especially concerning the relevant currencies. As a result of the consultation, PRA has clarified its approach to determining PRA relevant currencies and updated the timing of the publication of the volatility adjustment representative portfolios. These changes to the draft policy do not result in any additional requirement on firms compared to the original proposals.
The policy has been designed for the context that the UK is no longer bound by EU law and amendments have been made to the retained EU law under the EU (Withdrawal) Act 2018. The technical information will be impacted by the proposed use of temporary transitional powers at the end of the transition period. The general use of the temporary transitional powers would have the effect of maintaining the current preferential risk treatment and calculation methodologies of EU exposures and assets under the applicable capital frameworks for 15 months, after the end of the transition period. Therefore, the fundamental spreads for EU-27 government bonds will be identical to those published by EIOPA during the 15 months that transitional relief applies. PS24/20 and Statement of Policy are relevant to all UK Solvency II firms, including in respect of the Solvency II groups provisions, and to the Society of Lloyd’s and its managing agents.
In another development, BoE appointed Appvia as a partner to assist in design, construction, and assurance of a new cloud environment. This follows a public procurement process which commenced in January 2020. During the two-year partnership, Appvia will be supporting development and project teams at BoE in testing and deploying code in cloud environments, working with security teams to integrate the cloud into existing operational and security processes and in implementing the information governance compliance for safe and secure collaboration.
Related Links
Effective Date: December 31, 2020
Keywords: Europe, UK, Insurance, Banking, Securities, Solvency II, Technical Information, Volatility Adjustment, PS24/20, Cloud Computing, Brexit Transition, PRA
Featured Experts

Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist

Cassandra Hannibal
Life insurance actuary; risk management and economic capital specialist

Jerome Ogrodzki
Insurance asset and liabilities modeling specialist; stochastic modeling expert
Previous Article
MAS Proposes Changes to Rules Arising from Banking Amendment ActRelated Articles
BIS Innovation Hub Sets Out Work Program for 2021
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
EC Plans to Consult on Crisis Management and EDIS Framework Revisions
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.