This supervisory statement is addressed to UK Solvency II firms and to the Society of Lloyd’s. It is also addressed to firms in run-off which may fall within the ambit of the transitional provision set out in Transitional Measures 2 in the Transitional Measures Part of the Prudential Regulation Authority’s (PRA’s) Rulebook.
The statement sets out how the PRA expects to deal with firms in the circumstances envisaged by Article 144 of the Solvency II Directive, where a firm does not meet the minimum capital requirement (MCR) and where either: i) the PRA considers that the finance scheme the firm has submitted is manifestly inadequate, or ii) the firm fails to comply with the approved scheme within three months from the observation of non-compliance with the MCR.
This statement should be read alongside all relevant European legislation as well as the Undertakings in Difficulty Part of the PRA Rulebook.
Supervisory Statement 7/15