The PRA seeks feedback on a draft statement setting out its expectations on firms in relation to the application of the MA for the purposes of calculating technical provisions, including in the context of applications for MA approval and the ongoing management of MA portfolios under Solvency II.
The draft supervisory statement sets out the Prudential Regulation Authority’s(PRA) proposed expectations of firms with regard to the matching adjustment (MA) in the following areas:
-
annuity assets purchased in a secondary annuity market;
-
ongoing MA compliance;
-
breach of MA requirements; and
-
changes to MA portfolios.
The PRA is consulting on this draft statement to allow firms the opportunity to provide feedback and highlight any issues of concern to them.
The proposals in this consultation contain the PRA’s expectations on firms in relation to applications for MA approval and in particular, on issues concerning the eligibility of annuity assets purchased in a secondary market. The proposals also contain the PRA’s expectations on issues to be considered once MA approval has been granted, such as the issues of ongoing MA compliance, dealing with MA breaches and what happens when there are changes to MA portfolios.
The PRA welcomes views on this consultation by 15 July 2016.
Full news
Consultation paper
© Bank of England
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article