Bank of England: Solvency II: applying EIOPA Set 2, system of governance and ORSA guidelines
30 October 2015
This statement has been subject to public consultation and reflects the feedback that was received by the PRA. It sets out the PRA’s expectation that all firms must comply with all of the Set 2, system of governance and ORSA guidelines
This supervisory statement sets out the Prudential Regulation Authority’s (PRA’s) expectations of firms and its general approach to the following European Insurance and Occupational Pensions Authority’s (EIOPA’s) Guidelines:
-
Set 2 of the Solvency II Guidelines (‘the Guidelines’), published as final reports on 6 July 2015 and in all European Union official languages on 14 September 2015; and
-
the System of Governance and the Own Risk and Solvency Assessment (ORSA), published as final reports on 3 February 2015 and in all European Union official languages on 14 September 2015.
This statement also provides further commentary on certain Guidelines where additional considerations, including those set out in previous PRA supervisory statements, should be taken into account by firms:
-
recognition and valuation of assets and liabilities other than technical provisions;
-
methods for determining the market shares for reporting;
-
reporting for financial stability purposes;
-
reporting and public disclosure; and
-
ORSA.
It does not address the expected EIOPA Guidelines relating to third-country branches as these have not yet been published in all official languages of the European Union.
The PRA will take full account of the Guidelines in its ongoing supervision of the Solvency II regulatory framework.
© Bank of England
