PRA consults further on Solvency 2: PRA has published its third consultation paper on implementing Solvency 2 into its rules. The paper has four sections, and deals with matters PRA had deferred from its previous two consultations, and the changes introduced to Solvency 2 by Omnibus 2. The key areas are:
- the long-term guarantees (LTG) package. PRA needs to make changes to the rules it had previously consulted on, because of Omnibus 2;
- new proposals on surplus funds in response to feedback from a previous consultation; and
- feedback on the approach to Lloyd’s public disclosure of capital add-ons and undertaking specific parameters, following earlier consultation.
PRA has also set out an economic cost benefit analysis that considers the impact, as a whole, of the LTG. PRA needs to finalise its rules by March 2015 for them to apply to firms from 1 January 2016. PRA asks for comment by 7 November. (Source: PRA Consults Further on Solvency 2)