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

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521