BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019. Solvency II Directive allows firms to apply to their supervisory authority for approval to use the TMTP. Under the Directive, recalculation is permitted, at the initiation of either the firm or PRA every 24 months or more frequently, where the risk profile of the firm has materially changed.
In line with the supervisory statement SS6/16 on the maintenance of TMTP under Solvency II, BoE has been monitoring market conditions since the previous biennial TMTP recalculation (as at December 31, 2017) and has been considering whether changes in market conditions since the end of June can reasonably be considered to have been sustained. In any application, BoE expects firms to be able to demonstrate that a material change in risk profile has occurred. This is relevant to all firms with the current TMTP approval. Firms should note that to expedite the application process, BoE would expect applications at this time to use firms’ existing TMTP calculation methodology. Applications received at this time would be in addition to the expected biennial TMTP recalculation as at December 31, 2019.
Keywords: Europe, UK, Insurance, Solvency II, Reinsurance, TMTP, Transitional Measure, SS6/16, BoE
CBUAE has issued a regulation that introduces the licensing and supervision framework for low-risk, specialized banks.
APRA is consulting on CPG 511—the draft Prudential Practice Guide on remuneration for banks, insurers, and superannuation licensees—with the comment period ending on July 23, 2021.
MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector.
PRA published a letter that sets out findings from the 2020 Internal Audit Review of the Collections function of a sample of non-systemic banks and building societies.
EIOPA launched a consultation on the Interbank Offered Rate (IBOR) transitions, in context of the EU Benchmarks Regulation.
EIOPA published a discussion paper on uses cases of, and the European approach to, blockchain and smart contracts in the insurance sector.
HKMA granted a banking license to NongHyup Bank (also NH Bank), which is incorporated in the Republic of Korea.
PRA published a discussion paper that explores options for developing a simpler but resilient prudential framework for banks and building societies that are neither systemically important nor internationally active.
ECB published an opinion on the proposal for a regulation on the pilot regime for market infrastructures based on distributed ledger technology.
EBA proposed regulatory technical standards that specify how to identify the appropriate risk-weights and conditions when assessing minimum loss given default (LGD) values for exposures secured by immovable property.