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PRA Regulatory Digest - April

Regulatory Digest - The PRA has published its Regulatory Digest for April.  Key insurance areas it covers are:
 

  • Maintenance of the 'transitional measure on technical provisions' under Solvency II -- PS11/17.  This PRA PS provides feedback on responses to Consultation Paper (CP) 47/16 'Maintenance of the 'transitional measure on technical provisions' under Solvency II'. The PS also contains an updated SS6/16.  It is particularly relevant to firms that have been granted approval to use the transitional measure on technical provisions, or those considering applying to use this transitional measure.
  • Solvency II: Supervisory disclosures, the PRA's supervisory approach and insurance regulations applicable in the United Kingdom. The PRA published supervisory disclosures in line with its obligations under Article 31(2) of the Solvency II Directive. These disclosures include: aggregate statistical data on key aspects of the application of the prudential framework; a table covering the manner of exercise of the options provided for in the Solvency II Directive; links to the texts of insurance regulations applicable in the United Kingdom; and links to the PRA's supervisory approach. This public disclosure is designed to foster a uniform level of transparency and accountability between supervisory authorities.
  • Standard formula SCR reporting template update. The PRA published a document with details of minor corrections to the SF.01 template. 
  • PRA issues letter on General Insurance Stress Test 2017 (GIST 2017). The PRA sent a request to the United Kingdom's largest general insurers to provide information about the impact of a range of stress tests on their projected Own Funds, as well as providing additional information on their sectoral exposures to the UK economy. 
  • Whistleblowing in non-EEA UK branches -- PS8/17 - This PRA policy statement (PS) provides feedback to responses for Consultation Paper (CP) 35/16 'Whistleblowing in UK branches' and sets out the final rules. This PS is relevant to: UK branches of non-European Economic Area (EEA) deposit-takers; UK branches of non-EEA Solvency II insurers; and UK firms that are the UK subsidiaries of non-EEA deposit-takers with a UK branch.
  • Regulated fees and levies: rates proposals 2017/18 -- CP4/17 update - The PRA published an update regarding paragraph 1.4 of CP4/17, in which the PRA stated it would issue an updated CP if the final estimate of the PRA's pension costs varied more than £2 million from the stated cost. The variance is less than the £2 million figure and so the PRA will not be issuing an updated CP.
  • Contingency planning for the UK's withdrawal from the European Union - letter from Sam Woods - This letter is relevant to banks, insurers and designated investment firms undertaking cross-border activities between the United Kingdom and the rest of the European Union. Responses to the letter are requested by Friday 14 July 2017 and should be emailed to April2017Letter@bankofengland.co.uk.

The full document can be found here.