Non–Solvency II Firms – Transitional Measures

1.1

Unless otherwise stated, this Part applies to:

1. (1) a run-off firm;
2. (2) a non-directive insurer; and
3. (3) a Swiss general insurer.

1.2

In this Part, the following definitions shall apply:

application rules

means any application rule in any Part in the Non-Solvency II Firms Sector of the PRA Rulebook.

run-off firm

means a firm to which, but for the application of Transitional Measures 2.1 to 2.3 in the Solvency II Firms Sector, the Solvency II rules would apply.

Solvency II rules

means the PRA rules in the Valuation, Technical Provisions, Own Funds, Solvency Capital Requirement – General Provisions, Solvency Capital Requirement – Standard Formula, Solvency Capital Requirement – Internal Models, Minimum Capital Requirement, Undertakings in Difficulty, Investments, Composites, Conditions Governing Business, Insurance Special Purpose Vehicles, Group Supervision, Reporting, Surplus Funds, With-Profits, Insurance – Conduct Standards, Insurance – Senior Insurance Management Functions, Insurance – Allocation of Responsibilities and Insurance – Fitness and Propriety Parts of the Solvency II Firms Sector of the PRA Rulebook.

2.1

Notwithstanding the application rules, each Part in the Non-Solvency II Firms Sector of the PRA Rulebook applies to a run-off firm for so long as it remains a run-off firm as if the firm was a non-directive insurer and not a UK Solvency II firm.

3.1

A firm must comply with the rules in:

1. (1) IPRU(FSOC) Chapter 5; and
2. (2) IPRU(INS) Chapters 9 and 12

of the PRA Handbook as at 31 December 2015, as they were applicable to the firm (including any waiver) at that date, in respect of financial years ending on or before 31 December 2015.