The Solvency 2 Regulations 2015

  1. Introductory Text

  2. PART 1 Citation, commencement and interpretation

    1. 1.Citation and commencement

    2. 2.Interpretation

  3. PART 2 Supervision

    1. 3.Exercise of PRA and FCA functions

    2. 4.Review of capital add-ons

    3. 4A.Non-compliance with solvency capital requirement and exceptional adverse situations

    4. 4B.Duty to publish technical information

    5. 4C.Powers in relation to Gibraltar undertakings

    6. 4D.Procedure on the exercise of powers under regulation 4C

    7. 5.Passporting: notification of home state regulator

    8. 6.EIOPA: information

    9. 7.EIOPA and EBA: notifications

    10. 8.Other EEA States: information

    11. 9.Non-compliance with the minimum capital requirement: provision of information to other supervisory authorities

    12. 9A.This Part applies to the following types of groups—

    13. 9B.Where the participating insurance or reinsurance undertaking, or participating Gibraltarian...

  4. PART 3 Groups

    1. CHAPTER 1 Cases of application and scope

      1. 10.Risk concentration and intra-group transactions

      2. 11.Equivalent provisions

      3. 12.Exclusion of undertaking from group supervision

    2. CHAPTER 2 Levels

      1. 13.Supervision of parents and subgroups at national level: substantive powers

      2. 14.Supervision of parents and subgroups at national level: procedure

    3. CHAPTER 3 Group Solvency

      1. 15.Supervision of group solvency and frequency of calculation

      2. 16.Choice of method

      3. 17.Inclusion of proportional share

      4. 18.Related undertakings: calculation of group solvency

      5. 19.Participating undertakings: calculation of group solvency

      6. 19A. Gibraltar undertakings: calculation of group solvency

      7. 20.Internal models and capital add-ons

      8. 21.Subsidiaries: solvency capital requirement

      9. 22.Subsidiaries: non-compliance with the solvency and minimum capital requirements

      10. 23.Subsidiaries: revocation of approval for applying Articles 238 and 239 of the Solvency 2 Directive

    4. CHAPTER 4 Risk concentration and intra-group transactions

      1. 24.Supervision of risk concentration and intra-group transactions

    5. CHAPTER 5 Risk management and internal control

      1. 25.Supervision of system of governance

    6. CHAPTER 6 Measures to facilitate group supervision

      1. 26.Rule for deciding the group supervisor

      2. 27.Exceptions to the rule for deciding the group supervisor

      3. 28.Duties of group supervisor ...

      4. 29.Cooperation and exchange of information between supervisory authorities

      5. 30.Consultation between supervisory authorities

      6. 31.Access to information

      7. 32.Verification of information

      8. 33.Group solvency and financial condition report

      9. 34.Enforcement measures

    7. CHAPTER 7 Third countries

      1. 35.Non-EEA solvency 2 parent undertakings: equivalence

      2. 36.Parent undertaking outside the United Kingdom: absence of equivalence

      3. 36A.Parent undertakings outside the United Kingdom: levels

    8. CHAPTER 8 Mixed-activity insurance holding companies

      1. 37.Intra-group transactions

  5. PART 4 Approvals

    1. CHAPTER 1 Procedure: applications

      1. 38.Meaning of “approval”, “group application” and “protected item”

      2. 39.Applications: eligibility, process, information and documents

      3. 40.Additional process: applications from groups and applications to more than one supervisory authority

    2. CHAPTER 2 Specific Approvals

      1. 41.Verification that the Solvency 2 Directive does not apply

      2. 42.Matching adjustment

      3. 43.Volatility adjustment

      4. 44.Supervisory approval of ancillary own-funds

      5. 45.Eligible own funds for an intermediate insurance holding company

      6. 46.Classification of funds

      7. 47.Basic Solvency Capital Requirement

      8. 48.Models

      9. 49.Group applications

      10. 50.Third-country insurance undertakings: approval of supervision in more than one EEA State

      11. 51.Withdrawal of authorisation for third-country insurance undertakings authorised in more than one EEA State

      12. 52.Subsidiaries: application of Articles 238 and 239 of the Solvency 2 Directive

      13. 53.Transitional measures on risk-free interest rates

      14. 54.Transitional measures on technical provisions

    3. CHAPTER 3 Procedure: decisions, appeals and notices

      1. 55.Decisions: written notices

      2. 56.Appeals

      3. 57.Publication of written notices

    4. CHAPTER 4 Rule waivers

      1. 58.Modification or waiver of rules

  6. PART 5 Amendments

    1. 59.Amendments

    2. 60.Schedule 2, which contains amendments to secondary legislation, has effect....

  7. Signature

    1. SCHEDULE 1

      Amendments to primary legislation

      1. PART 1 Amendments to FSMA

        1. 1.FSMA is amended as follows.

        2. 2.(1) Section 55J (variation or cancellation on initiative of regulator)...

        3. 3.After section 55K (investment firms: particular conditions that enable cancellation),...

        4. 4.After section 55P (prohibitions and restrictions), insert— Assets requirements imposed...

        5. 5.In section 105 (insurance business transfer schemes), in subsection (3),...

        6. 6.(1) Section 116 (effect of insurance business transfers authorised in...

        7. 7.In section 165(7) (regulators' power to require information: authorised persons...

        8. 8.(1) Section 167 (appointment of persons to carry out general...

        9. 9.In section 190(4) (requests for further information), for paragraph (b)...

        10. 10.In section 194 (general grounds on which power of intervention...

        11. 11.(1) Section 198 (power to apply to court for injunction...

        12. 12.In section 316 (direction by a regulator), in subsection (4)(b)(i),...

        13. 13.In section 367(3) (winding up petitions), before paragraph (a), insert—...

        14. 14.In section 405(5) (directions), omit paragraphs (c) and (d).

        15. 15.In section 417 (definitions), in subsection (1), insert at the...

        16. 16.In section 425(1)(a) (expressions relating to authorisation elsewhere in the...

        17. 17.(1) Schedule 3 (EEA passport rights) is amended as follows....

        18. 18.(1) Schedule 12 (transfer schemes: certificates) is amended as follows....

      2. PART 2 Amendments to other primary legislation

        1. 19.Friendly Societies Act 1992

        2. 20.Finance Act 1997

        3. 21.Terrorism Act 2000

        4. 22.Capital Allowances Act 2001

        5. 23.Proceeds of Crime Act 2002

        6. 24.Finance Act 2003

        7. 25.Companies Act 2006

        8. 26.Corporation Tax Act 2009

    2. SCHEDULE 2

      Amendments to secondary legislation

      1. 1.Insolvency (Scotland) Rules 1986

      2. 2.Companies (1986 Order) (Insurance Companies Accounts) Regulations (Northern Ireland) 1994

      3. 3.Mineworkers' Pension Scheme (Modification) Regulations 1994

      4. 4.Industry-Wide Mineworkers' Pension Scheme Regulations 1994

      5. 5.Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995

      6. 6.Occupational Pension Schemes (Scheme Administration) Regulations 1996

      7. 7.Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997

      8. 8.Individual Savings Account Regulations 1998

      9. 9.Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 2000

      10. 10.Competition Act 1998 (Determination of Turnover for Penalties) Order 2000

      11. 11.Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

      12. 12.The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

      13. 13.Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001

      14. 14.Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2001

      15. 15.The Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001 (Article 39)

      16. 16.Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003

      17. 17.Insurers (Reorganisation and Winding Up) Regulations 2004

      18. 18.Child Trust Funds Regulations 2004

      19. 19.Financial Conglomerates and Other Financial Groups Regulations 2004

      20. 20.Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005

      21. 21.Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 2005

      22. 22.Pension Protection Fund (Entry Rules) Regulations 2005

      23. 23.Insurers (Reorganisation and Winding Up) (Lloyd's) Regulations 2005

      24. 24.Occupational Pension Schemes (Investment) Regulations 2005

      25. 25.Money Laundering Regulations 2007

      26. 26.Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

      27. 27.Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008

      28. 28.Payment Services Regulations 2009

      29. 29.Mutual Societies (Transfers) Order 2009

      30. 30.Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009

      31. 31.Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2009

      32. 32.Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010

      33. 33.Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010

      34. 34.Electronic Money Regulations 2011

      35. 35.Bank of England Act 1998 (Macro-prudential Measures) Order 2013

      36. 36.Enterprise Act 2002 (Mergers) (Interim Measures: Financial Penalties) (Determination of Control and Turnover) Order 2014

    3. SCHEDULE 3

      Parent undertakings outside the EEA: equivalence

      1. 1.This Schedule specifies the procedure for verifying whether the insurance...

      2. 2.The PRA must follow the procedure set out in Flowchart...

      3. 3.Flowchart 1 also imposes duties and confers powers on the...

      4. 4.Where reference is made to this paragraph in Flowchart 1,...

      5. 5.In this schedule, “acting group supervisor” means the supervisory authority...

    4. SCHEDULE 4

      Procedure for an application for a subsidiary to be subject to national law implementing Articles 238 and 239 of the Solvency 2 Directive

      1. 1.When the PRA receives an application referred to in the...

      2. 2.Flowchart 2 also imposes duties and confers powers on the...

      3. 3.In Flowchart 2— (a) “college” means the college of supervisory...

    5. SCHEDULE 5

      Procedure for group applications

      1. 1.When the PRA receives a group application, the PRA must...

      2. 2.Flowchart 3 also imposes duties and confers powers on the...

      3. 3.In Flowchart 3— (a) “college” means the college of supervisory...

  9. Explanatory Note