The consultation also provides a first substantial glimpse into the PRA's approach to Solvency II rulemaking post-Brexit and marks a return to a UK style of more principles-based regulation. The PRA notes its proposals are in line with developing international capital standards for insurers, which is currently also under consultation .
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Solvency II sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.
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Since January 2016, the EU (re) insurers are governed by the Solvency II regulatory regime. Gradual reviews have been undertaken since then to ensure that the regime remains fit for purpose.
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The PRA has determined that groups subject to group supervision by the PRA which meet this criteria set out in Article 254 of the Solvency II Directive (as at the end of the transition period) 5 may be eligible for this exemption from quarterly reporting at the level of the group. Groups that are granted this exemption may not be required to submit any group level quarterly reporting templates.
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1.9 Chapter 1 (Overview) of CP12/23 set out the background to the Solvency II Review, the key benefits envisaged by the CP12/23 reforms, and the planned future structure of the Solvency II regime under the new regulatory framework for financial services regulation in the UK.
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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) (recast) (Text with EEA relevance)
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Solvency II is the prudential regime for insurance and reinsurance undertakings in the EU. It has entered into force in January 2016. Solvency II sets out requirements applicable to insurance and reinsurance companies in the EU with the aim to ensure the adequate protection of policyholders and beneficiaries.
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Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) Text with EEA relevance.
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Print pdf. DIRECTIVE 138/2009/EC (SOLVENCY II DIRECTIVE) TITLE I - GENERAL RULES ON THE TAKING-UP AND PURSUIT OF DIRECT INSURANCE AND REINSURANCE ACTIVITIES. TITLE II - SPECIFIC PROVISIONS FOR INSURANCE AND REINSURANCE. TITLE III - SUPERVISION OF INSURANCE AND REINSURANCE UNDERTAKINGS IN A GROUP.
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