Operational Risk and Loss Absorbing Capacity

PRA Rules and Modifications by Consent

• Solvency Capital Requirement – General Provisions
• Solvency Capital Requirement – Standard Formula (Chapters 1, 2, 3, 3G, 5)
• Loss Absorbing Capacity of Deferred Taxes (LACDT) (Modification by consent)
• Permissions and Waivers (Chapter 4)

Supervisory Statements

• Solvency II: recognition of deferred tax (SS2/14)
• The Prudential Regulation Authority’s approach to Standard Formula adaptations (Statement of Policy)

Other relevant material

Guidelines originally issued by European Supervisory Authorities should be read in conjunction with "Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU" (Statement of Policy)

• Guidelines on look-through approach (EIOPA-BoS-14/171)
• Guidelines on loss-absorbing capacity of technical provisions and deferred taxes (EIOPA-BoS-14/177)