2

Compliance with the Guidelines

2.1

It is the PRA’s responsibility to make every effort to comply with EIOPA Guidelines[6] and its intention is to comply with all of the Set 1 Guidelines. The PRA will take full account of the Guidelines in its ongoing supervision under the new Solvency II regulatory framework. The PRA expects firms to comply with all of the Guidelines that apply to them in a proportionate manner, in accordance with the principle set out in the Solvency II Directive (‘the Directive’).[7]

Footnotes

2.2

Those Guidelines on which further commentary is provided are:

  • ancillary own-funds;
  • classification of own-funds;
  • ring-fenced funds;
  • treatment of related undertakings, including participations;
  • loss-absorbing capacity of technical provisions and deferred taxes; and
  • group solvency calculation.