Featured Product

    PRA Consults on Maintenance of TMTP Under Solvency II

    May 22, 2019

    PRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II. The consultation closes on August 21, 2019. CP11/19 is relevant to UK insurance and reinsurance firms within the scope of Solvency II that have been granted approval to use the TMTP, the Society of Lloyds, and firms that are considering applying to use this transitional measure.

    The proposals provide:

    • Additional guidance for firms proposing to use a proportionate approach to the TMTP recalculation methodology
    • Further clarity on the consistency of Solvency I and Solvency II methodologies

    TMTP mitigates changes to the calculation of technical provisions that have been introduced by Solvency II. The starting point for the calculation of TMTP is a comparison of technical provisions calculated under Solvency I Pillar 2 (Individual Capital Adequacy Standards) and under Solvency II. In its response to the Treasury Select Committee’s (TSC) report on Solvency II, PRA recognized the burden of maintaining multiple systems for recalculation of the TMTP and committed to considering the feasibility of simplifying the TMTP calculations. In recognizing that the current operation of the TMTP is overly burdensome for firms, PRA has investigated a range of methodologies to simplify the TMTP recalculations. Furthermore, following responses to CP13/18 and policy statement (PS31/18) on equity release mortgages, PRA has considered the approach to consistency between Solvency I and Solvency II bases set out in SS6/16.

     

    Related Links

    Comment Due Date: August 21, 2019

    Keywords: Europe, UK, Insurance, Solvency II, TMTP, Transitional Measure, Reinsurance, Pillar 2, SS6/16, CP11/19, PRA

    Featured Experts
    Related Articles
    News

    HKMA Reduces Countercyclical Capital Buffer in Hong Kong to 2.0%

    HKMA announced that the countercyclical capital buffer (CCyB) for banks in Hong Kong has been reduced from 2.5% to 2.0%, with immediate effect, in accordance with the Banking (Capital) Rules.

    October 14, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for October 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to ten questions.

    October 11, 2019 WebPage Regulatory News
    News

    EC Consults on Implementation of Final Basel III Reforms in EU

    EC launched a public consultation on the implementation of Basel III standards in EU.

    October 11, 2019 WebPage Regulatory News
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3962