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Transitional Measures Groups – Internal Models

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.

8.1

01/01/2016

Notwithstanding Group Supervision 11.2, until 31 March 2022, the group SCR of a group based on consolidated data (consolidated group SCR) must be calculated on the basis of either:

  1. (1) the standard formula;
  2. (2) an approved internal model, in a manner consistent with the general principles contained in the SCR Rules; or
  3. (3) approved internal models, where each approved internal model is applicable to a part of a group where both the Solvency II undertaking and the ultimate parent undertaking are located in the same EEA State and that part of the group forms a distinct part having a significantly different risk profile from the rest of the group.

[Note: Art. 308b (16) of the Solvency II Directive]