Changes to Solvency II QRTs
On 17 December 2021, the PRA published the Policy Statement (PS) 29/21 – Review of Solvency II: Reporting (Phase 1), being the outcome of the Consultation Paper (CP) 11/21.
The PS comprises the PRA’s final rule instrument, UK Technical Standards amendment instrument, Statement of Policy (SoP) and Supervisory Statements (SS).
We understand from the PS that there is:
- removal of any quarterly reports requirement for quarters 1, 3 and 4 for firms with a quarterly waiver. Quarterly reporting waivers will now apply for all firms in Categories 3, 4 and 5. Reporting will now be limited to a half yearly balance sheet and the full annual reports only,
- a decrease in the Minimum Capital Requirement (MCR) reporting frequency in the template S28s from quarterly to annual,
- an increase threshold giving exemption to reinsurance business for reporting specified non-life annuities.
This is being achieved by amendments to the relevant PRA supervisory statements, such as SS11/15, SS40/15, SS41/15 and SS44/15 reflecting the above proposed changes.
The CP originally had the proposed effective date as 31st March 2022. This has now been brought forward to 31st December 2021. This means that Q4 quarterly reports will now not need to be generated for most firms.
SDA is continuously monitoring PRA updates and we just want to draw your attention to it. Besides, SDA is in a good position to assist firms on those changes and to enhance the services we offer to our clients, so please get in touch if you would like to discuss. We are here to support you.