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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) the Society, in accordance with General Application 3
  3. (3) managing agents, in accordance with General Application 3; and
  4. (4) (in respect of 3.8 only) a UK ISPV.

4.1

01/01/2016

Notwithstanding Own Funds 3.1 to 3.3, a firm with an item of basic own-funds that:

  1. (1) was issued prior to 18 January 2015;
  2. (2) could be used as:
    1. (a) core tier one capital;
    2. (b) perpetual non-cumulative preference shares;
    3. (c) innovative tier one capital; or
    4. (d) upper tier two capital,
  3.       on 31 December 2015; and
  4. (3) would not otherwise be included as Tier 1 own funds or Tier 2 own funds in accordance with Own Funds 3.1 to 3.2,

must include that item in Tier 1 own funds for up to 10 years after 1 January 2016.

Additional Notes


[Note: Art. 308b (9) of the Solvency II Directive]

4.2

01/01/2016

Notwithstanding Own Funds 3.1 to 3.3, a firm with a basic own-fund item that:

  1. (1) was issued prior to 18 January 2015;
  2. (2) could be used as lower tier two capital on 31 December 2015,

must include that item in Tier 2 own funds for up to 10 years after 1 January 2016.

Additional Notes


[Note: Art. 308b (10) of the Solvency II Directive]

4.3

01/01/2016

For the purposes of 4.1 and 4.2, items listed at 4.1(2)(a) to (d) and 4.2(2) must not include any item that could only be used as the item specified by virtue of rule GENPRU TP 4 of the PRA Handbook as at 31 December 2015.