The FSA has published its second Consultation Paper on the transposition of the Solvency II Directive. CP12/13 sets out feedback received in response to the FSA's first consultation (published in November 2011). It also contains the proposed new rules and guidance which will form part of the new prudential sourcebook for Solvency II insurers, as well as the proposed amendments to the rules and guidance in relation to with-profits and linked long-term business.

As far as possible, the FSA has followed the Level 1 text of the Directive and sought not to re-open discussions on issues that have already been agreed in Europe. The consultation period is open until 11 October 2012. The responses to the first and second consultations will be collated and a policy statement is expected to be published in late 2012/early 2013.

Since the publication of CP12/13, the FSA has confirmed that it is working towards an implementation deadline of 1 January 2014 for all firms, with the transposition of the new Directive to have been effected by 30 June 2013 in all Member States.