PRA published the consultation paper CP3/19, which sets out proposals to update the supervisory statement (SS18/16) on longevity risk transfers under Solvency II. PRA proposes to change its expectations for pre-notification of longevity risk transfers and hedge arrangements and to update the key risks arising from longevity risk transfers. Comments are requested by May 06, 2019. CP3/19 is relevant to PRA-authorized UK firms that fall within the scope of the Solvency II Directive and to the Society of Lloyd’s.
PRA proposes to update SS18/16 to change its expectations for how firms notify PRA of new longevity risk transfer arrangements and to highlight an additional key risk (basis risk) that should be included in firms’ assessments of the residual risks these transactions give rise to. The proposed changes differentiate between the level of pre-notification expected for large and/or complex transactions and other transactions. For large and/or complex transactions, which are defined in the updated SS18/16, PRA does not propose to change how firms engage with PRA in advance of their execution. However, for other transactions, PRA proposes to streamline the notification process by enabling firms to report these via a template. In addition to simplifying and standardizing the information firms are required to provide to PRA, this will also remove the need for the information to be reviewed by PRA in advance.
Comment Due Date: May 06, 2019
Keywords: Europe, EU, Insurance, Solvency II, Longevity Risk Transfers, Proportionality, Pre-notification Expectation, CP3/19, SS18/16, PRA
Previous ArticleFDIC Finalizes Rules on Community Bank Leverage Ratio Framework
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.
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.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
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).
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.
The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.
The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).