This consultation paper (CP) sets out proposed changes to the PRA's rules to implement the Solvency II Directive (the Directive) as amended by the Omnibus II Directive (OMD II). It also contains draft supervisory statements which set out the PRA's expectations of firms and what firms may expect of the PRA.
CP16/14 is the third consultation on the transposition of Solvency II and consults on rules to transpose the amendments to the Directive introduced by OMD II and on the implementation of areas deferred from the previous two CPs issued by the predecessor regulator, the Financial Services Authority (FSA). CP11/22 Transposition of Solvency II - Part 1 was published in November 2011, and CP12/13 Transposition of Solvency II - Part 2 was published in July 2012.
This CP is of primary interest to around 400-450 retail and wholesale insurance firms, and to Lloyd's. There will also remain approximately 100 small firms, classified as non-Directive firms under both Solvency I and Solvency II. While the regulation of these firms will remain under existing rules, this CP may also be of indirect interest.