The Solvency 2 Regulations 2015

PART 1 U.K. Citation, commencement and interpretation

Citation and commencement U.K.

1.—(1) These Regulations may be cited as the Solvency 2 Regulations 2015.

(2) Except where paragraph (3) applies, these Regulations come into force on 1st January 2016.

(3) Regulations 1, 2, 38 to 58 and paragraph 15 of Schedule 1 come into force on 31st March 2015.

(4) Before 1st January 2016, references to “the Solvency 2 Directive” in any amendment of FSMA that comes into force in accordance with paragraph (3) are to be read as if the amendments made by paragraphs 16(b) and 17(3) of Schedule 1 were already in force.

Interpretation U.K.

2.—(1) In these Regulations—

“capital add-on” means the amount by which the solvency capital requirement of an insurance undertaking or reinsurance undertaking, or a group, is increased by the PRA;

“EEA solvency 2 parent” means a parent undertaking with its head office in an EEA State which is—

(a)

an insurance undertaking or reinsurance undertaking which is a participating undertaking in at least one insurance undertaking, reinsurance undertaking or third-country insurance undertaking;

(b)

an insurance holding company; or

(c)

a mixed financial holding company;

“EIOPA” means the European Insurance and Occupational Pensions Authority established under the EIOPA Regulation;

“EIOPA Regulation” means Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24th November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority) M1 ;

“Financial Conglomerates Directive” means Directive 2002/87/EC of the European Parliament and of the Council of 16th December 2002 on the supplementary supervision of credit institutions, insurance undertakings, and investment firms in a financial conglomerate M2 ;

“FSMA” means the Financial Services and Markets Act 2000 M3 ;

“home EEA State” means—

(a)

for non-life insurance, the EEA State in which the head office of the insurance undertaking covering the risk is situated;

(b)

for life insurance, the EEA State in which the head office of the insurance undertaking covering the commitment is situated;

(c)

for reinsurance, the EEA State in which the head office of the reinsurance undertaking is situated;

“method 1” and “method 2” have the same meaning as in Articles 220 to 234 of the Solvency 2 Directive;

“non-EEA solvency 2 parent” means a parent undertaking which is—

(a)

a third-country insurance undertaking; or

(b)

an insurance holding company or mixed financial holding company with its head office outside the EEA;

“regulated entity” has the meaning given by Article 2(4) of the Financial Conglomerates Directive;

“Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) M4 ;

“third country” means a country which is not an EEA State;

“third-country insurance undertaking” has the meaning given by Article 13(3) of the Solvency 2 Directive;

“UK solvency 2 parent” means a parent undertaking with its head office in the United Kingdom which is—

(a)

an insurance undertaking or reinsurance undertaking which is a participating undertaking in at least one insurance undertaking, reinsurance undertaking or third-country insurance undertaking;

(b)

an insurance holding company; or

(c)

a mixed financial holding company;

“ultimate EEA solvency 2 parent” means an EEA solvency 2 parent which has no parent undertaking which is an EEA solvency 2 parent or a non-EEA solvency 2 parent;

“ultimate non-EEA solvency 2 parent” means a non-EEA solvency 2 parent which has no parent undertaking which is an EEA solvency 2 parent or non-EEA solvency 2 parent;

“ultimate UK solvency 2 parent” means a UK solvency 2 parent which has no parent undertaking which is an EEA solvency 2 parent or non-EEA solvency 2 parent.

(2) Except as provided by paragraph (1) or regulation 38(2)—

(a) any expression used in these Regulations which is defined in section 417 (definitions) or 424 (insurance) of, or Part 1 of Schedule 3 to, FSMA has the meaning given by that section or Part M5 ;

(b) any other expression used in these Regulations which is used in the Solvency 2 Directive has the meaning which it is given in that Directive M6 .

Marginal Citations

M1 OJ no L331, 15.12.2010, p. 48.

M2 OJ no L035, 11.02.2003, p.1.

M3 2000 c.8.

M4 OJ no L335, 17.12.2009, p.1, as amended by Directive 2011/89/EU (OJ no L326, 8.12.2011, p. 113), Directive 2012/23/EU (OJ no L249, 14.9.2013, p. 1), Directive 2013/23/EU (OJ no L158, 10.6.2013, p. 362), Directive 2013/58/EU (OJ no L341, 18.12.2013, p. 1) and Directive 2014/51/EU (OJ no L153, 22.5.2014, p. 1).

M5 “FCA”, “insurance undertaking”, “PRA”, “reinsurance undertaking”, “rule” and “Tribunal” are defined in section 417 and “EEA State” is defined in Part 1 of Schedule 3.

M6 “Branch”, “parent undertaking”, “reinsurance” and “supervisory authority” are defined in Article 13.