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Transitional Measures Technical Provisions

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.

11.1

01/01/2016

A firm may only:

  1. (1) apply a transitional deduction from its technical provisions; or
  2. (2) recalculate the amount of any transitional deduction

if it has received approval to do so by the PRA.


[Note: Art. 308d(1) and (3) of the Solvency II Directive]

11.2

01/01/2016

A firm with approval to apply the technical provisions transitional measure must:

  1. (1) not apply the risk-free interest rate transitional measure; and
  2. (2) as part of its SFCR publically disclose that it applies the transitional deduction and the quantification of the impact of not applying the transitional deduction on its financial position.

[Note: Art. 308d(5) of the Solvency II Directive]