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Own Funds Eligibility and Limits Applicable to Tiers

Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm; and
  2. (2) in accordance with Insurance General Application 3, the Society.

4.1

01/01/2016

As far as compliance with its SCR is concerned at least the following conditions must be met:

  1. (1) more than one-third of the total amount of the firm’s eligible own funds is accounted for by Tier 1 own funds; and
  2. (2) less than one-third of the firm’s eligible own funds is accounted for by Tier 3 own funds.

[Note: Art. 98(1) of the Solvency II Directive]

4.2

01/01/2016

As far as compliance with its MCR is concerned, as a minimum more than 50% of the firm’s eligible own funds must be accounted for by Tier 1 own funds.


[Note: Art. 98(2) of the Solvency II Directive]