Transitional Measures Phasing-In Plan

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.

12.1

01/01/2016

A firm with approval to use the risk-free interest rate transitional measure or the technical provisions transitional measure must:

  1. (1) immediately inform the PRA as soon as it observes that the SCR is no longer complied with without application of the risk-free interest rate transitional measure or the technical provisions transitional measure
  2. (2) take the measures necessary to achieve compliance with the SCR by 1 January 2032
  3. (3) within two months from the observation of non-compliance with the SCR without application of the risk-free interest rate transitional measure or the technical provisions transitional measure, submit a phasing-in plan to the PRA.

[Note: Art. 308e(1) and (2) of the Solvency II Directive]

12.2

01/01/2016

A firm’s phasing-in plan must set out the planned measures to establish the level of eligible own funds covering the SCR or reduce its risk profile to ensure compliance with the SCR by 1 January 2032.


[Note: Art. 308e(2) of the Solvency II Directive]

12.3

01/01/2016

A firm that updates its phasing-in plan must submit the updated phasing-in plan to the PRA.


[Note: Art. 308e(2) of the Solvency II Directive]

12.4

01/01/2016

A firm with approval to use the risk-free interest rate transitional measure or the technical provisions transitional measure and that is subject to the requirement in 12.1(3) must submit annually a report to the PRA setting out the measures taken and progress made to ensure compliance with the SCR by 1 January 2032.


[Note: Art. 308d(5) and 308e(3) of the Solvency II Directive]