PRA published the consultation paper CP2/18 that proposes a number of regulatory reporting changes designed to reduce the burden for Solvency II firms and mutuals while maintaining the ability of PRA to meet its statutory objectives and to supervise firms. CP2/18 is relevant to all UK Solvency II firms, Society of Lloyd’s, and its managing agents and mutuals. This consultation will close on April 13, 2018.
The proposals in CP2/18 have been developed by PRA as part of its work on adjustments to the insurance prudential framework, in light of experience following the implementation of Solvency II by the United Kingdom. The proposals include consideration of areas recommended for reform by the Association of British Insurers (ABI) and discussed with the Treasury Select Committee. PRA believes that these proposals would reduce the reporting burden for smaller firms. CP2/18 includes the following proposals:
- To update the scope, content, and/or format of eight of the thirteen National Specific Templates (NSTs)—NS.01, NS.02, NS.05, NS.06, NS.07, NS.09, NS.10 and NS.11—found in rule 2.6 and Chapter 8 of the Reporting Part of the PRA Rulebook
- To amend the content of corresponding NST LOG files and introduce a new supervisory statement containing the LOG files
- To update the supervisory statement SS11/15, which is titled “Solvency II: Regulatory Reporting and exemptions,” for changes to quarterly reporting waivers and clarification on the timing for resumption of reporting, should a waiver expire or be revoked
- Amendments to rule 5.2 of the Change in Control Part of the PRA Rulebook, to exempt mutuals from submitting Annual Controller Reports if they do not have a Controller
Comment Due Date: April 13, 2018
Keywords: Europe, UK, Insurance, Solvency II, Regulatory Reporting, NST, CP2/18, SS11/15, Proportionality, PRA
Previous ArticleESRB Paper on CCPs in Interest Rate Derivatives Market in EU
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.