Prudential Regulation Authority publishes PS4/19 Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down

Prudential Regulation Authority publishes PS4/19

Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down

20 February 2019
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback on responses to Consultation Paper (CP) 27/18 ‘Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down’. It also contains the PRA’s final policy on updating Supervisory Statement (SS) 3/15 ‘Solvency II: The quality of capital instruments’, see Appendix 1.

The PRA has also issued a reporting clarification on how such adjustments should be reflected in the Solvency II reporting templates (Appendix 2).

This PS is relevant to UK insurance firms within the scope of Solvency II, the Society of Lloyd’s, and firms that are part of a Solvency II group that will determine and classify capital instruments under the Solvency II own funds regime, together with their advisors. 
View Policy Statement

Also published today:

Solvency II: the quality of capital instruments - SS3/15 UPDATE

View Supervisory Statement UPDATE

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