The UK Financial Markets Law Committee (FMLC) recently published a report highlighting a number of legal uncertainties arising from Solvency II. Key uncertainties highlighted include issues relating to (a) third country branches (in particular, the way in which criteria for authorisation of such branches will be applied and whether capital and governance requirements are imposed at the level of the branch or the undertaking), (b) groups (including lack of clarity as to how rules in Solvency II designed to apply to solo undertakings should be interpreted in the group context) and (c) risk retention (including that Solvency II rules restricting investment in securitisations may cause confusion as they are inconsistent with rules in other pieces of EU legislation).