Glossary

eligible own funds

31/12/2020

The changes to this defined term are effective from 23:00 on 31/12/2020.

means:

(1) as to compliance with a UK Solvency II firm’s SCR, the aggregate of the firm’s:

(a) Tier 1 own funds; and

(b) eligible Tier 2 own funds; and

(c) eligible Tier 3 own funds; and

(2) as to compliance with a UK Solvency II firm’s MCR, the aggregate of the firm’s:

(a) Tier 1 own funds; and

(b) eligible Tier 2 own funds; and

(3) as to compliance by a composite firm with the notional life MCR, the aggregate of the firm’s:

(a) Tier 1 own funds; and

(b) Tier 2 basic own funds

     that satisfy the limits in Own Funds 4 as if references to the “MCR” in those provisions were references to the notional life MCR; and the limits in the Solvency II Regulations; and

(4) as to compliance by a composite firm with the notional non-life MCR, the aggregate of the firm’s:

(a) Tier 1 own funds; and

(b) Tier 2 basic own funds

     that satisfy the limits in Own Funds 4.2 as if references to the “MCR” in those provisions were references to the notional non-life MCR; and the limits in the Solvency II Regulations.

(5) as to compliance with the branch SCR, means the aggregate of the third country branch undertaking’s:

(a) Tier 1 own funds; and

(b) (i) Tier 2 own funds; and

      (ii) Tier 3 own funds

     that satisfy the limits in Own Funds 4.1, as if references to the “SCR” in those provisions were references to the branch SCR; and the limits in the Solvency II Regulations.

(6) as to compliance with the branch MCR, means the aggregate of the third country branch undertaking’s:

(a) Tier 1 own funds; and

(b) Tier 2 basic own funds that satisfy the limits in Own Funds 4.2 as if references to the “MCR” in those provisions were references to the branch MCR; and the limits in the Solvency II Regulations.