PRA has published two supervisory statements on Solvency 2 following consultation feedback (see FReD 4 September):
- “Solvency 2: applying EIOPA’s Set 2, System of Governance and ORSA Guidelines” (SS41/15). This sets out PRA expectations that firms must comply with all of the EIOPA Set 2 guidelines, as well as EIOPA guidelines on the system of governance and the own risk and solvency assessment (ORSA), in a proportionate manner. It also provides commentary on certain guidelines where additional considerations, largely set out in previous PRA statements, should be taken into account by firms. The supervisory statement does not cover guidelines relating to third-country branches as these have not yet been published in the official EU languages; and
- “Solvency 2: reporting and disclosure – options provided to supervisory authorities” (SS40/15). This sets out PRA expectations of firms where the Solvency 2 supervisory reporting ITS and the Solvency 2 public disclosure ITS allow supervisory authorities to specify different approaches to the default set out in the ITS, or require supervisory authorities to issue instructions. The ITS still have to be formally adopted by the Commission. PRA states that this statement may be updated if there are substantial changes to the ITS on their adoption.