PRA launches series of improvements to the implementation of Solvency II
25 October 2017
The PRA published the first in a short series of consultation papers on reform to the implementation of Solvency II starting with the Matching Adjustment (MA).
The series of targeted improvements will support the PRA’s commitment to the Treasury Committee made in February 2017 to explore reform of some areas of the PRA’s implementation of Solvency II, which came into force on 1 January 2016. The PRA has worked closely with firms and the Association of British Insurers (ABI) in developing these measures.
The series is intended to improve the implementation of certain aspects of Solvency II, consistent with the PRA’s role in this framework and its statutory objectives.
Sam Woods, Deputy Governor for Prudential Regulation, said: “We have now had 21 months’ experience of operating the new Solvency II regime. In light of that experience, we have identified a number of areas where we can improve our implementation, and are today publishing our first set of proposals”.
Today’s consultation paper includes additional guidance on the eligibility of assets for the MA and provides greater clarity on our expectations for firms in relation to the application of MA. It also consolidates and updates material previously published.
This consultation closes on Wednesday 31 January 2018.
© Bank of England
