PRA is consulting on a supervisory statement which sets out and clarifies PRA’s expectations for the recalculation of the transitional measure on technical provisions (TMTP) under Solvency 2. In particular, the proposed statement sets out PRA’s expectations and proposed process for:
- requesting that a firm carry out a recalculation of the transitional measure; and
- assessing a firm’s application for a recalculation on the basis of a material change in risk profile.
The consultation closes on 13 May. (Source: PRA consults on TMTP recalculation under Solvency 2)