2
Overview of the PRA’s approach
2.1
The PRA has retained the methodologies and judgements that the European Insurance and Occupational Pensions Authority (EIOPA) incorporates in its TI as at the end of the transition period (TP), with some exceptions as set out in Chapter 3. Additionally, from the end of the temporary transitional powers (TTP) on 31st March 2022, the PRA applies the preferential (30%) long term average spread calculation only to UK central government and central bank exposures and no longer to EU exposures.2
Footnotes
- 2. Consultation Paper 18/19: UK withdrawal from the EU: Changes following extension of Article 50 - Annex BU (Amendments to the Technical Provisions Part), section 7.3. https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/consultation-paper/2019/cp1819-complete.pdf?la=en&hash=573F7920C9CFF71114674FE54707645F9CF4C247. The CP proposals were confirmed as final policy via the joint Bank and PRA statement in April 2020: https://www.bankofengland.co.uk/prudential-regulation/publication/2020/joint-bank-pra-statement-on-proposeduse-of-ttp-at-the-end-of-the-transition-period
- 01/09/2022
2.2
The PRA’s TI is published on the Bank of England’s website.3
- 01/09/2022