SS1/20 - Solvency II: Prudent Person Principle

First published on 27 May 2020

This Supervisory Statement (SS) sets out the Prudential Regulation Authority’s (PRA’s) expectations of firms in accordance with the requirements under the Prudent Person Principle (PPP) under the Solvency II Directive regarding:

• their development and maintenance of an investment strategy;

• their management of risks arising from investments and their internal governance within the investment function; and

• their investment in assets not admitted to trading on a regulated market and intragroup loans and participations.

This SS is addressed to all UK Solvency II firms, including in the context of provisions relating to Solvency II groups, mutuals, third-country branches, the Society of Lloyd’s and its managing agents.

Current version

Published on 6 June 2024. Effective from 30 June 2024.

• Supervisory statement 1/20 – June 2024 (pdf)

- following PS10/24 – Review of Solvency II: Reform of the Matching Adjustment

Future version

Published on 15 November 2024. Effective from 31 December 2024.

Past version

Published on 27 May 2020. Effective from 27 May 2020.

• Supervisory statement 1/20 – May 2020 (pdf)

- following PS14/20 – Solvency II: Prudent Person Principle