Featured Product

    PRA Delays Effective Date for Work of Auditors on Matching Adjustment

    December 15, 2020

    PRA announced delay to the proposed effective date set out in paragraph 1.12 of the consultation paper CP11/20, which covers expectations and guidance related to auditors’ work on the matching adjustment under Solvency II. PRA confirmed that any finalized approach will not be effective for audits of the Solvency and Financial Condition Reports, in short SFCRs, with a December 31, 2020 reporting date. The delay to the proposed effective date takes into account feedback from the respondents to CP11/20, including in relation to the impact of COVID-19 shock. Through this communication, PRA intends to provide clarity and certainty for auditors and firms in relation to the audits of December year-end Solvency and Financial Condition Reports.

    The proposals in CP11/20 include clarifications and enhanced transparency on the PRA expectations in respect of auditors’ work on the matching adjustment. CP11/20 also proposes several new expectations that relate to the communication by auditors on the subject of the matching adjustment. The proposals in CP11/20 would result in changes to the supervisory statement SS11/16 on the external audit of, and responsibilities of the governing body in relation to, the public disclosure requirement with reference to Solvency II. CP11/20 is relevant to UK Solvency II firms (including mutuals) that have approval to make use of the matching adjustment, especially those that are subject to an audit requirement in respect of their Solvency and Financial Condition Report. It is also relevant for the auditors of such organizations and the users of these Solvency and Financial Condition Reports. The consultation CP11/20 has now closed and PRA is considering the feedback it has received from respondents to the consultation, before finalizing the policy. Through its guidance, PRA aims to clarify the requirements and expectations for auditors that form a view on the matching adjustment as part of their audit of the Solvency and Financial Condition Report. 

     

    Related Links

    Keywords: Europe, UK, Insurance, Solvency II, Matching Adjustment, CP11/20, SFCR, Implementation Timeline, External Audit, PRA

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8196