Prudential Regulation Authority Rulebook

2.1

A firm must submit to the PRA information which is necessary for the purposes of the PRA’s supervision of the firm.

[Note: Art. 35(1) of the Solvency II Directive]

2.2

The information referred to in 2.1 must:

1. (1) be submitted in the applicable format or template (if any) provided in the Solvency II Regulations or in the form of any national specific template where applicable; and
2. (2) include at least the information necessary to enable the PRA to assess the matters set out below when performing the supervisory review process:
1. (a) the firm’s system of governance;
2. (b) the business pursued by the firm;
3. (c) the valuation principles applied by the firm for solvency purposes;
4. (d) the risks faced by the firm;
5. (e) the risk management systems of the firm; and
6. (f) the capital structure, capital needs and capital management of the firm, and
3. (3) enable the PRA to make any appropriate decisions resulting from the exercise of their supervisory rights and duties.

[Note: Art. 35(1) of the Solvency II Directive]

2.3

The information referred to in 2.1 and 2.2 must comprise the following:

1. (1) qualitative or quantitative elements, or any appropriate combination thereof;
2. (2) historic, current or prospective elements, or any appropriate combination thereof; and
3. (3) data from internal or external sources, or any appropriate combination thereof.

[Note: Art. 35(3) of the Solvency II Directive]

2.4

The information which a firm submits to the PRA in accordance with 2.1 and 2.2 must comply with the following principles:

1. (1) it must reflect the nature, scale and complexity of the business of the firm, and in particular the risks inherent in that business;
2. (2) it must be accessible, complete in all material respects, comparable and consistent over time; and
3. (3) it must be relevant, reliable and comprehensive.

[Note: Art. 35(4) of the Solvency II Directive]

2.5

A firm must have in place appropriate systems and structures to fulfil the requirements set out in 2.1 to 2.4, as well as a written policy approved by its governing body ensuring the ongoing appropriateness of the information submitted by the firm to the PRA.

[Note: Art. 35(5) of the Solvency II Directive]

2.6

Subject to 2.7, a firm falling within categories (1) to (7) must submit to the PRA the corresponding national specific templates on an annual basis:

1. (1) [Deleted]
2. (2) A firm which manages a material pooling agreement must submit template NS.03: Material Pooling Arrangements;
3. (3) An assessable mutual which:
1. (a) has called for an additional contribution after 1 January 2006; or
2. (b) has received approval for ancillary own funds as contemplated in Own Funds 2.3(4)
4. must submit template NS.04: Assessable Mutuals;
5. (4) A firm writing suretyship business the effect of which is to improve the credit rating of the underlying security must submit template NS.08: Business Model Analysis – Financial Guarantee Insurers;
6. (5) A long-term insurer must submit:
1. (a) NS.01: With-Profits Value of Bonus if net best estimate liabilities for with-profits insurance business are more than £500m and the firm is a single with-profits fund;
2. (b) NSR.01: With-Profits Value of Bonus for each ring-fenced fund which is also a with-profits fund and for the remaining part where this is a with-profits fund if net best estimate liabilities for with-profits insurance business are more than £500m for the firm as a whole;
3. (c) NS.02: With-Profits Assets and Liabilities if net best estimate liabilities for with-profits insurance business are more than £500m and the firm is a single with-profits fund;
4. (d) NSR.02: With-Profits Assets and Liabilities for each ring-fenced fund which is also a with-profits fund and for the remaining part where this is a with-profits fund if net best estimate liabilities for with-profits insurance business are more than £500m for the firm as a whole;
5. (e) NS.05: Revenue Account - Life;
6. (f) NSR.05 Revenue Account – Life for the remaining part and each ring-fenced fund which is also a with-profits fund if the firm has one or more ring-fenced funds which is also a with-profits fund;
7. (g) NS.06: Business Model Analysis – Life if gross technical provisions for life business (including health similar to long-term business) are more than £500m; and
8. (h) NS.09: Best Estimate Assumptions for Life Insurance Risks;
7. (6) A general insurer must submit template NS.07: Business Model Analysis - Non-life;
8. (7) A general insurer carrying on insurance business and proportional and non-proportional reinsurance obligations relating to:
1. (a) railway rolling stock;
2. (b) aircraft;
3. (c) ships;
4. (d) goods in transit;
5. (e) motor vehicle liability;
6. (f) aircraft liability;
7. (g) liability of ships; or
8. (h) general liability
9. must submit template NS.10: Projection of Future Cash Flows (Best Estimate - Non Life: Liability Claim Types);
10. (8) A general insurer carrying on insurance business relating to:
1. (a) employers’ liability (including as part of a mixed commercial package);
2. (b) public and products liability (including as part of a mixed commercial package; or
3. (c) professional indemnity

must submit template NS.11: Non-Life Insurance Claims Information (General Liability Sub-classes).

2.7

A firm falling within 2.6(2), 2.6(3)(a) or 2.6(6) that does not have a Part 4A permission to effect contracts of insurance is not subject to the obligation to complete the corresponding national specific template.

2.8

The Society must submit to the PRA the following national specific templates:

1. (1) template NS.12: The Society of Lloyd’s Solvency Capital Requirement on an annual basis; and
2. (2) template NS.13: The Society of Lloyd’s Minimum Capital Requirement on a quarterly basis.

2.9

For the purposes of 2.6 and 2.8, all amounts shown in units must be reported in UK sterling unless the national specific template expressly states otherwise.

2.10

A firm shall submit the annual national specific templates referred to in 2.6 and 2.8(1), after the end of the transitional period set out in Transitional Measures 3.1, no later than 14 weeks after the firm’s financial year end.

2.11

The Society shall submit the quarterly national specific templates referred to in 2.8(2) after the end of the transitional period set out in Transitional Measures 3.3, no later than 5 weeks after any quarter ending.

2.12

If the due date for the national specific template falls on a day which is not a business day, the documents must be submitted no later than the next business day after the due date.

2.13

1. (1) A firm, other than a friendly society, shall submit to the PRA, the national specific templates referred to in 2.6 and 2.8 in electronic format.
2. (2) A friendly society shall submit to the PRA the national specific templates referred to in 2.6 and 2.8 in electronic format or by post or by hand to the Regulatory Data Group, Statistics and Regulatory Data Division (HO5 B-D), Bank of England, Threadneedle Street, London EC2R 8AH; or via fax to the Regulatory Data Group of the Bank of England on 020 7601 3334.

2.14

Where a firm notifies the PRA that any of its submissions of national specific template submissions under 2.6 or 2.8 is incorrect, or where the PRA notifies a firm that any part of the national specific template appears to it to be inaccurate or incomplete, the firm must promptly make any appropriate corrections or adjustments and if necessary re-submit the national specific template (or relevant part of it).