PRA updates on Solvency 2: PRA has updated on various aspects of Solvency 2 implementation:

  • a letter and amendment to PRA's Supervisory Statement clarifies PRA’s expectations of firms planning to restructure their equity release mortgage portfolios in order to meet the matching adjustment eligibility criteria; and
  • a consultation paper on PRA’s expectations of firms in relation to EIOPA’s Set 1 Solvency 2 Guidelines, which EIOPA published on 2 February. PRA expects all firms to comply with EIOPA's guidelines and the consultation sets out a draft supervisory statement. It also embellishes on those parts of the guidelines that address: ancillary own-funds; classification of own-funds; ring-fenced funds; treatment of related undertakings, including participations; loss-absorbing capacity of technical provisions and deferred taxes; and group solvency calculation. PRA asks for comment by 19 March.

(Source: PRA Updates on Solvency 2)