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

PART 7 Transitional provision

Transitional provision in relation to approval of temporary models

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(1), 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 exit 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 exit 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 exit day occurs.”

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

“CHAPTER 3A 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 exit 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).”

(1)

2000 c. 8.