Prudential Regulation Authority Rulebook

1.1

This supervisory statement is addressed to all UK firms within the scope of Solvency II, and to Lloyd’s, in relation to the European Insurance and Occupational Pensions Authority’s (EIOPA’s) Set 1 Solvency II Guidelines¹ (‘the Guidelines’) published on 2 February 2015.

1.2

This supervisory statement expands on the Prudential Regulation Authority’s (PRA’s) general approach set out in the PRA’s Approach to Insurance Supervision.² By clearly and consistently explaining its expectations of firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders.  The PRA has considered matters to which it is required to have regard, and it considers that this statement is compatible with the Regulatory Principles³ and relevant provisions of the Legislative and Regulatory Reform Act 2006.⁴ This statement is not expected to have any direct or indirect discriminatory impact under existing UK law.

1.3

This statement has been subject to public consultation⁵ and reflects the feedback that was received by the PRA. It sets out the PRA’s expectation that all firms comply with the EIOPA Set 1 Guidelines. It also provides further commentary on certain Guidelines where additional considerations, largely set out in previous PRA supervisory statements, should be taken into account by firms.