Prudential Regulation Authority Rulebook

4.1

Solvency Capital Requirement — General Provisions 7.3 requires the Society to calculate a central requirement for Lloyd’s. As the central requirement forms part of the Lloyd’s SCR, the provisions of Article 37 of the Solvency II Directive will apply in respect of any risk profile deviation on the part of the Society from the assumptions underlying the calculation of the central requirement. The PRA will use its powers under section 55M of the Financial Services and Markets Act 2000 (FSMA) in order to apply any capital add-on to the Society. The Solvency II Regulations also apply in relation to the imposition of a capital add-on.