Responses to CP13/19 'Occasional Consultation Paper'

Published on 30 September 2019

Responses to CP13/19 ‘Occasional Consultation Paper’ – PS21/19

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 13/19 ‘Occasional Consultation Paper’. It also includes the final rules, updated supervisory statements (SS), and relevant templates and LOG files.

This PS is relevant to different firms, as follows:

• Chapter 2 of CP13/19 – all UK insurance firms within the scope of Solvency II, the Society of Lloyd’s, and firms that are part of a Solvency II group that will determine and classify capital instruments under the Solvency II own funds regime, together with their advisors.
• Chapter 3 of CP13/19 – all insurance firms, insurance holding companies, and the Society of Lloyd’s.
• Chapter 4 of CP13/19 – UK banks and UK designated investment firms with Capital Requirements Regulation (CRR) Internal Model Approach (IMA) permissions.
• Chapter 5 of CP13/19 – all Solvency II firms, including the Society of Lloyd’s.

The appendices to this PS provide links to the final rules amending parts of the PRA Rulebook, final SSs, and final templates and LOG files, as set out in the table below.

Feedback to responses

The PRA received no responses in respect of Chapters 2-4, and will therefore publish the policy as proposed. In addition, we have made further administrative corrections to SS8/14.

The PRA received one response to Chapter 5. The response requested clarity on several templates and LOG files. Changes to the policy as consulted are set out in paragraph 1.6 of the PS. The PRA does not consider that these changes are significant or will have a differential impact on mutuals.

Implementation

The implementation dates for all policy changes set out in this PS are on:

• publication of the final policy for Chapters 2-4; and
• Saturday 30 November 2019 for Chapter 5.

Policy Statement 21/19

• Appendix 1: SS3/15 ‘Solvency II: The quality of capital instruments
• Appendix 2: SS8/14 ‘Subordinated guarantees and the quality of capital for insurers’
• Appendix 3: SS2/15 ‘Solvency II: Own funds’
• Appendix 4: PRA RULEBOOK: CRR FIRMS: REGULATORY REPORTING (AMENDMENT) (NO. 2) INSTRUMENT 2019 (PDF)
• Appendix 5: SS34/15 ‘Guidelines for completing regulatory reports’
• Appendix 6: PRA RULEBOOK: SOLVENCY II: REPORTING AMENDMENTS INSTRUMENT 2019 (PDF)
• Appendix 7: SS25/15 ‘Solvency II: Regulatory reporting internal model outputs’
• Appendix 8: National Specific Templates (NS.07) (XLSX)
• Appendix 9: National Specific Templates (NS.08) (XLSX)
Appendix 10: National Specific Templates LOG files (NS.07) (PDF), and (NS.08) (PDF), (NS.10) (PDF) and (NS.11) (PDF) 

• Appendix 11: Internal model output (IM.00) template (XLSX)
• Appendix 12: Internal model output (IM.00) LOG file (PDF)
• Appendix 13: Internal model output (IM.03) template (XLSX)
• Appendix 14: Internal model output (IM.03) LOG file (PDF)

Note: Appendix 11 and 13 are presented here in one combined document. These will be separated for when the templates go live on Saturday 30 November 2019.

Published on 07 June 2019

Occasional Consultation Paper - CP13/19

Overview

This Consultation Paper (CP) proposes minor amendments to Prudential Regulation Authority (PRA) Rulebook Parts, supervisory statements (SSs), and the relevant templates and LOG files.

The chapters in this CP are relevant to different firms, as follows:

• Chapter 2 – all UK insurance firms within the scope of Solvency II, the Society of Lloyd’s, and firms that are part of a Solvency II group that will determine and classify capital instruments under the Solvency II own funds regime, together with their advisors;
• Chapter 3 – all insurance firms, insurance holding companies, and the Society of Lloyd’s;
• Chapter 4 – UK banks and UK designated investment firms with Capital Requirements Regulation (CRR) Internal Model Approach (IMA) permissions; and
• Chapter 5 – all Solvency II firms, including the Society of Lloyd’s. 

The chapters contained in this CP, the Rulebook Parts, SSs, and relevant templates and LOG files they propose to change, and the appendices containing the draft policy, are listed in the table below.

Responses and next steps

The consultation closed on Wednesday 7 August 2019.

The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to OCP.responses@bankofengland.co.uk.

During the consultation period, we will be issuing a Public Working Draft (PWD) of the taxonomy update to support collection of the proposed changes to National Specific Templates (NSTs), internal model output , market risk sensitivities (MRS) and standard formula (SF) reporting. The PWD will include the interaction of these changes with the draft EIOPA Taxonomy 2.4 changes. The PRA plans to give firms no less than three weeks to review the PWD. 

The proposals set out in chapters 2, 3 and 4 of this CP have been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the proposals will not be affected in the event that the UK leaves the EU with no implementation period in place.

As changes in Chapter 5 relate to reporting they should be read in conjunction with SS2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU’.

Implementation

Pending consideration of the responses to the consultation, the proposed implementation dates are: 

• on publication of the final policy for chapters 2-4; and
• on Saturday 30 November 2019 for Chapter 5. 

Consultation Paper 13/19

• Appendix 8: Draft updates to National Specific Template (NS.07) (XLSX)
• Appendix 9: Draft updates to National Specific Template (NS.08) (XLSX)
• Appendix 11: Draft updates to internal model output (IM.00) template (XLSX)
• Appendix 12: Draft updates to internal model output (IM.00) LOG file (pdf)
• Appendix 13: Draft updates to internal model output (IM.03) template (XLSX)
• Appendix 14: Draft updates to internal model output (IM.03) LOG file (pdf)