Prudential Regulation Authority Rulebook

4.1

Subject to 4.2, an external auditor appointed by a firm or relevant insurance group undertaking pursuant to 3 must:

1. (1) undertake a reasonable assurance engagement on relevant elements of the SFCR;
2. (2) produce a report that includes an opinion addressed to the governing body confirming that the relevant elements of the SFCR are prepared in all material respects in accordance with the PRA rules and Solvency II Regulations on which it is based;
3. (3) read and consider all information disclosed by the firm in its SFCR that is not a relevant element of the SFCR to identify material inconsistencies with the relevant elements of the SFCR and any knowledge obtained during the course of the audit of the SFCR engagement and (where applicable) audit of the financial statements.

4.2

The changes to this rule are effective from 23:00 on 31/12/2020.

Where the relevant elements of the SFCR in a group SFCR that:

1. (1) pertains to an undertaking that is not a UK Solvency II firm; and
2. (2) information has been prepared in accordance with:
1. (a) PRA rules other than those implementing the Solvency II Directive; or
2. (b) UK law other than the Solvency II Regulations,

the external auditor shall state in the report under 4.1(2) that the information has been properly compiled in accordance with the relevant PRA rules and UK law relating to that undertaking from information provided by undertakings in the group and the relevant insurance group undertaking.

4.3

The Report in 4 must be prepared with due, skill, care and diligence.