Statement
This is relevant to all PRA regulated UK Solvency II firms and groups that are currently subject to PRA directions containing waiver or modification of PRA rules. A separate letter will be issued to third-country branches shortly.
The PRA intends to publish its final package of rules relating to the Solvency II Review in mid-November 2024. These rules will come into effect on 31 December 2024. The PRA has published three major policy statements (PS) on the Review of Solvency II:
- PS2/24 – Review of Solvency II: Adapting to the UK insurance market,
- PS3/24 – Review of Solvency II: Reporting and disclosure phase 2 near-final; and
- PS10/24 – Review of Solvency II: Reform of the Matching Adjustment.
The PRA intends to publish its final PS for CP5/24 – Review of Solvency II: Restatement of assimilated law, in mid-November 2024.
These final rules may affect existing PRA directions in respect of waivers or modifications of PRA rules held by insurance firms (UK Solvency II firms, groups and third-country branch undertakings). In particular, where waivers and modifications of PRA rules include references to Solvency II assimilated law (ie retained EU law) or the PRA Rulebook, these references may need to be updated to reflect the final PRA rules which are due to come into effect on 31 December 2024.
In mid-November the PRA will contact affected firms to provide further instructions and request consent to vary the wording of their existing directions (where necessary) so that they will remain valid from 31 December 2024. The PRA will look to make the process of providing consent as simple as possible for firms.
The PRA will provide more details on the process to firms. Please look out for further communications in due course on the following pages of the Bank’s website:
Once details of the process are available, affected firms will need to provide their consent before 30 December 2024 to ensure that the directions can continue and reflect the new rules as appropriate. In the meantime, firms should familiarise themselves with the relevant waivers and modifications that they currently hold.
Firms will not be required to submit new applications for their existing modifications to be varied.