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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.

6.1

01/01/2016

If a firm complies with the pre-Solvency II MCR but during 2016 does not comply with the SCR:

  1. (1) Undertakings in Difficulty 3.1(3) shall not apply;
  2. (2) the firm must take the measures necessary to achieve the establishment of the level of eligible own funds covering the SCR or the reduction of its risk profile to ensure compliance with the SCR by 31 December 2017; and
  3. (3) the firm must, every three months submit a progress report to the PRA setting out the measures taken and the progress made to establish the level of eligible own funds covering the SCR or to reduce the risk profile to ensure compliance with the SCR.

Additional Notes


[Note: Art. 308b (14) of the Solvency II Directive]

6.2

01/01/2016

6.1 shall cease to apply where a progress report submitted in accordance with 6.1(3) shows that there was no significant progress in achieving the establishment of the level of eligible own funds covering the SCR or the reduction of the risk profile to ensure compliance with the SCR between the date of the observation of non-compliance with the SCR and the date of the submission of the progress report.

Additional Notes


[Note: Art. 308b (14) of the Solvency II Directive]