25.—(1) The Solvency 2 Regulations 2015 M1 (approvals) are modified as follows.
(2) Regulation 48 (models) has effect as if, in paragraph (4), for the words from “six months” to the end there were substituted “ three years beginning with the day on which [F1IP completion day] occurs. ”
(3) Part 4 has effect as if, after Chapter 2, there were inserted—
54A.—(1) A person to whom regulation 8 or 11 of the EEA Passport Rights (Amendment etc., and Transitional Provisions) Regulations 2018 applies is to be treated as if the PRA has granted to the person an approval, determined in accordance with paragraphs (2) and (3), with respect to the person carrying on business in the UK through a branch.
(2) In respect of a person—
(a)who, immediately before [F1IP completion day], is approved by a supervisory authority of an EEA State—
(i)in respect of the matter mentioned in the first column of the following table and
(ii)under the provision of the Solvency 2 Directive mentioned in the corresponding entry in the second column of the table, and
(b)whose approval is applicable to the person's permanent presence in the UK,
the approval a person is treated as having is the approval mentioned in the corresponding entry in the third column of the table.
| Solvency 2 approval | Approval granted by supervisory authority of an EEA State | Deemed approval granted by the PRA |
|---|---|---|
| Matching adjustment to the relevant risk-free interest rate term structure | Article 77b of the Solvency 2 Directive | Regulation 42 |
| Volatility adjustment to the relevant risk-free interest rate term structure | Article 77d of the Solvency 2 Directive | Regulation 43 |
| Ancillary own funds | Article 90 of the Solvency 2 Directive | Regulation 44 |
| Classification of own funds | Article 95 of the Solvency 2 Directive | Regulation 46 |
| Full and partial internal model | Article 112 and 113 of the Solvency 2 Directive | Regulation 48(1)(a) |
| Group internal model to calculate the solvency capital requirement of an insurance or reinsurance undertaking | Article 231 or 233(5) of the Solvency 2 Directive | Regulation 48(1)(a) |
| Policy for changing a full and partial internal model | Article 115 of the Solvency 2 Directive | Regulation 48(1)(c) |
| Transitional measure on risk-free interest rates | Article 308c of the Solvency 2 Directive | Regulation 53 |
| Transitional measure on technical provisions | Article 308d of the Solvency 2 Directive | Regulation 54 |
| Design of the basic solvency capital requirement | Article 104(7) of the Solvency 2 Directive | Regulation 47 |
(3) In respect of a person—
(a)who, immediately before [F1IP completion day], is applying a volatility adjustment to the relevant risk-free interest rate term structure in order to calculate the best estimate referred to in Article 77(2) of the Solvency 2 Directive on a date specified by the PRA, and
(b)whose approval by a supervisory authority of an EEA State is not required,
the approval a person is treated as having is an approval under regulation 43.”
(4) Regulation 55 (decisions: written notices) has effect as if, after paragraph (2), there were inserted—
“(2A) If the PRA revokes an approval, the written notice must, where applicable, state the day on which regulation 54A ceases to apply.
(2B) For the purposes of paragraph (2A), the day stated must be a day that falls before the end of the period of three years beginning with the day on which [F1IP completion day] occurs.”
Textual Amendments
F1Words in reg. 25 substituted (31.1.2020 immediately before exit day) by The Financial Services (Consequential Amendments) Regulations 2020 (S.I. 2020/56), regs. 1, 6(2)(p)
Marginal Citations