The Solvency 2 and Insurance (Amendment, etc.) (EU Exit) Regulations 2019

PART 7 U.K. Transitional provision

Transitional provision in relation to approval of temporary models U.K.

12.—(1) The following modifications of Part 4 (approvals) of the Solvency 2 Regulations 2015 apply to a person who is—

(a) authorised in accordance with section 31(1)(a) of the Financial Services and Markets Act 2000 M1 , and

(b) subject to supervision at the level of the group in accordance with the provisions of national laws implementing Article 213(2)(a) and (b) of the Directive 2009/138/EC,

if, on the day before the day on which [F1 IP completion day] occurs, the PRA recognises a supervisory authority other than the PRA as the group supervisor of a group (in accordance with regulations 26 and 27 of the Solvency 2 Regulations 2015).

(2) In respect of an application for an approval for which a person has a deemed approval under regulation 57B, regulation 48 (models) has effect as if, in paragraph (4), for the words “6 months” to the end there were substituted “ 3 years beginning with the day on which [F2 IP completion day] occurs. ”.

(3) Regulation 55 (decisions: written notices) has effect as if, after paragraph (2), there were inserted—

“(2A) If the PRA decides to revoke an approval, the written notice must, where applicable, state the day on which regulation 57B 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 [F3 IP completion day] occurs.”

(4) Part 4 has effect as if, after Chapter 3, there were inserted—

“CHAPTER 3A U.K. Deemed Internal Model Approval

57B.— (1) A person with a Solvency II internal model approval granted by a supervisory authority of an EEA state before [F4 IP completion day] in the table in paragraph (2) must be treated as if the person has the corresponding approval granted by the PRA as set out in columns 1- 3 of the table in paragraph (2).

(2) For the purposes of paragraph (1), the Solvency II internal model approvals are:

Solvency II approval	Approval granted by supervisory authority of an EEA State	Deemed approval granted by the PRA
Group internal model to calculate the group solvency capital requirement at the level of an insurance holding company or mixed financial holding company in the EEA.	Article 230 or 231 of the Solvency 2 Directive.	Regulation 49.
Policy for changing a full and partial internal model in respect of a model at row 1.	Article 115 of the Solvency 2 Directive.	Regulation 48(1)(c).”

Textual Amendments

F1 Words in reg. 12(1) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(e)(i)

F2 Words in reg. 12(2) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(e)(i)

F3 Words in reg. 12(3) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(e)(ii)

F4 Words in reg. 12(4) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(e)(iii)

Commencement Information

I1 Reg. 12 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M1 2000 c. 8.

[F5 Transitional provision in relation to group supervision U.K.

13.— (1) This regulation applies where—

(a) in accordance with regulation 26 of the Solvency 2 Regulations 2015 (as amended by these Regulations), the Prudential Regulation Authority (“PRA”) is the group supervisor of a group; but

(b) in accordance with regulations 26 and 27 of the Solvency 2 Regulations 2015 (as they were in force immediately before IP completion day), the group supervisor would be a supervisory authority of an EEA State, which is not the PRA.

(2) Where this regulation applies, regulations 15(1), 24(1) and (2), 25, 28(2) and 36(4) of the Solvency 2 Regulations 2015 which impose requirements on the PRA as group supervisor do not apply for a period of two years beginning with IP completion day—

(a) unless the PRA decides that it is appropriate for these regulations to be applied in a particular case; or

(b) unless or until the group ceases to be supervised by a group supervisor of an EEA State.]

Textual Amendments

F5 Regs. 13-16 inserted (27.11.2020) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(2), 54(5)

[F5 Transitional regime for temporary equivalence under Article 172 of the Solvency 2 Directive U.K.

14.— (1) Subject to paragraphs (2) and (3), where before IP completion day the European Commission has under Article 172 of the Solvency 2 Directive determined that the solvency regime of a third country that applies to reinsurance activities of undertakings with their head office in that third country is temporarily equivalent to that laid down in Title I of that Directive (“the determination”), the Treasury may by regulations extend the date on which that determination would otherwise end.

(2) An extension under paragraph (1)—

(a) ceases to have effect on whichever is the earlier of—

(i) 31st December 2021; or

(ii) the date on which, in accordance with paragraph 1 of Article 378A of Delegated Regulation (EU) 2015/35, the supervisory regime of that third country has been determined to be equivalent to that laid down in the United Kingdom law which implemented the Solvency 2 Directive;

(b) only has effect so far as determining that the solvency regime of a third country that applies to reinsurance activities of undertakings with their head office in that third country is temporarily equivalent to that laid down in Title I of the Solvency 2 Directive as it applied to the United Kingdom immediately before IP completion day.

(3) The PRA must publish and keep up to date on its website a list of all third countries in respect of which the Treasury have made regulations under paragraph (1).

(4) Where, in accordance with paragraph (1), the determination has been extended, reinsurance contracts concluded with undertakings having their head office in that third country shall be treated in the same manner as reinsurance contracts concluded with undertakings authorised in accordance with the UK law implementing the Solvency 2 Directive.]

Textual Amendments

F5 Regs. 13-16 inserted (27.11.2020) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(2), 54(5)

[F5 Transitional regime for temporary equivalence under Article 260 of the Solvency 2 Directive U.K.

15.— (1) Subject to paragraphs (2) and (3), where before IP completion day the European Commission has under Article 260 of the Solvency 2 Directive determined that the prudential regime of a third country that applies to undertakings the parent undertaking of which has its head office in that third country is temporarily equivalent to that laid down in Title I of that Directive (“the determination”), the Treasury may by regulations extend the date on which that determination would otherwise end.

(2) An extension under paragraph (1)—

(a) ceases to have effect on whichever is the earlier of—

(i) 31st December 2021; or

(ii) the date on which, in accordance with paragraph 1 of Article 380A of Delegated Regulation (EU) 2015/35, the prudential regime of that third country has been determined to be equivalent to that laid down in the United Kingdom law which implemented the Solvency 2 Directive;

(b) only has effect so far as determining that that the prudential regime of a third country that applies to undertakings the parent undertaking of which has its head office in that third country is temporarily equivalent to that laid down in Title I of the Solvency 2 Directive as it applied to the United Kingdom immediately before IP completion day.

(3) The PRA must publish and keep up to date on its website a list of all third countries in respect of which the Treasury have made regulations under paragraph (1).]

Textual Amendments

F5 Regs. 13-16 inserted (27.11.2020) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(2), 54(5)

[F5 Interpretation and Regulations U.K.

16.— (1) In regulations 14 and 15—

“the PRA” means the Prudential Regulation Authority;

“the 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).

(2) Regulations made under regulation 14 or 15 are to be made by statutory instrument.

(3) A statutory instrument which contains regulations under regulation 14 or 15 is subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F5 Regs. 13-16 inserted (27.11.2020) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(2), 54(5)