On 22 August 2014, the PRA issued a supervisory statement on subordinated guarantees and capital quality for insurers. The statement sets out PRA expectations with regard to insurers' use of subordinated guarantees as part of their capital structures. The PRA's focus is that insurers' quality of capital should not be negatively affected by the use of such guarantees and the draft statement provides examples of acceptable outcomes in this regard. Insurers must inform their usual PRA contact by the end of September 2014 whether or not their capital structures involve the use of subordinated guarantees. If so, firms must also (a) confirm whether any adjustment has been made to the tiering of their capital resources to cater for this and (b) provide additional information to the PRA by 31 December 2014 (providing the contractual terms governing the subordinated guarantee, and either confirming where in the firm's regulatory returns the appropriate adjustment has been reflected or providing an independent legal opinion to support the firm's decision not to make an adjustment).