1

Introduction

1.1

This supervisory statement is addressed to all UK firms that fall within the scope of Solvency II, and the Society of Lloyd’s. It 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 (as at the end of the transition period)[1]:
(i) 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
(ii) 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.[2]

Footnotes

  • 1. The UK’s membership of the EU came to an end on Friday 31 January 2020. The UK entered into a transition period lasting until 11pm on Thursday 31 December 2020, which marked the end of the transition period, during which EU law continued to apply to the UK.
  • 2. EIOPA published the Guidelines on System of Governance and ORSA as final reports on 3 February 2015 and in all European Union official languages on 14 September 2015, after the rest of the Set 1 Guidelines were issued. Consequently, these Guidelines were not covered by PRA Supervisory Statement 22/15, ‘Solvency II: applying EIOPA’s Set 1 Guidelines to PRA authorised firms’, July 2015.

1.2

Guidelines on supervision of branches of third-country insurance undertakings are covered in supervisory statement 44/15.[3]

Footnotes

1.3

[Deleted].

1.4

[Deleted].

1.5

[Deleted].

1.6

Firms should also refer to:

  • Bank of England and PRA Statement of Policy ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’;[4]
  • Supervisory Statement (SS) 1/19 ‘Non-binding materials: The PRA’s approach after the UK’s withdrawal from the EU’;[5] and
  • Supervisory Statement (SS) 2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after EU withdrawal’.[6]

Footnotes

1.7

Any reference to any provision of direct EU legislation is a reference to it as it forms part of retained EU law.