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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 6 to 8; and
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 8.

5.1

01/01/2016

A firm must make every effort to remedy the deficiencies that led to the imposition of a capital add-on arising as a result of an internal model significant risk profile deviation or a significant system of governance deviation.

Additional Notes


[Note: Art. 37(3) of the Solvency II Directive]

5.2

01/01/2016

Except as provided in 5.3, the SCR prior to the imposition of the capital add-on, together with the amount of the capital add-on imposed by the PRA, will constitute the firm’s SCR.

Additional Notes


[Note: Art. 37(5) of the Solvency II Directive]

5.3

01/01/2016

For the purposes of calculating the risk margin, the SCR of a firm must not include any capital add-on imposed as a result of a significant system of governance deviation.

Additional Notes


[Note: Art. 37(5) of the Solvency II Directive]