PS19/23 – Responses to proposed minor amendments in CP8/23, Chapter 11 of CP12/23 and CP22/23

The Prudential Regulation Authority (PRA) has issued a Policy Statement which responds to (parts of) three previous consultations of the Authority, namely:
1. CP8/23 – Occasional consultation paper – April 2023 which consulted on proposes changes to the definition of „accounting principles“ in the Glossary, to the definition of „participating Solvency II undertaking“ also in the Glossary, one rule in the „auditor’s section“ of the PRA Rulebook to update an erroneous notification form number, and to the PRA’s „Statement of Policy: The PRA’s approach to the publication of Solvency II technical information“ to amend the PRA’s approach to the valuation of insurance liabilities for each relevant currency. The proposed changes are minor in nature and for clarification and correction purposes only. They do not alter existing PRA policy (please see EventID 20882 in this context for more information).
2. CP12/23 – Review of Solvency II: Adapting to the UK insurance market which consulted on proposed reform measures to UK Solvency II, including the treatment of transitional measures, the application and flexibility in the use of internal models, the calculation of the group Solvency Capital Requirement, revisions to the rules for third country branches, revisions to reporting and disclosure requirements, and thresholds adjustments for coming under the remit of Solvency II (please see EventID 22007 in this context for more information).
3. CP22/23 – Occasional consultation paper – October 2023 which consulted on amending the Depositor Protection rule DPP 9.2 to require the Financial Services Compensation Scheme (FSCS) to „make available the compensation“ rather than „pay compensation“ within ten, later seven working days following the failure of an institution and on modifying two forms in the Senior Managers and Certification Regime (SM&CR) to allow reporting of violations of rules under the new Consumer Duty (please see EventID 23322 in this context for more information).
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In its Policy Statement now, the PRA summarizes the responses it has received to its entire consultations CP8/23 and CP22/23 and the responses it has received to the Chapter 11 proposals in CP12/23 relating to administrative changes only (updates of definitions to reflect changes to the Solvency II risk margin). It also outlines its way forward in these matters.
Specifically, the PRA states that all respondents agreed with or acknowledged the proposed changes which is why the PRA will proceed as proposed with the modifications. Accordingly, no changes have been made to the draft versions. The final PRA instruments to implement the Rulebook changes as well as the updated „Statement of Policy: The PRA’s approach to the publication of Solvency II technical information“ are attached to the Policy Statement and to this Event.