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The Solvency II remuneration requirements are contained in ‘the Solvency II Regulation’ with guidance provided in the European Insurance and Occupational Pensions Authority (EIOPA) ‘Guidelines on system of governance’ finalised on 14 September 2015. The Solvency II Regulation is directly applicable to Solvency II firms, and as such it is for firms themselves to interpret the Solvency II Regulation correctly and ensure compliance.
The Prudential Regulation Authority (PRA) expects all Solvency II firms to comply with Article 275 of the Solvency II Regulation. The PRA, as the supervisory authority responsible for monitoring and enforcing compliance with Article 275, publishes the final supervisory statement to support compliance by setting out the PRA’s expectations of how compliance may be achieved, particularly by ‘significant insurers’ (PRA Category 1 and 2 firms).
This policy has been designed in the context of the current UK and EU regulatory framework. The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with the European Union take effect.