Solvency II: PRA and FCA Handbook transposition table
A transposition table that explains how the PRA and FCA are expected to transpose the Solvency II Directive (2009/138/EC) (also known as Solvency 2) into their respective Handbooks. The table gives a brief description of each of the Solvency II Articles and identifies the PRA or FCA Handbook provisions that are proposed to transpose each Article.
The table is based on the FSA’s consultation papers on, and other materials relating to, transposing Solvency II. However, it may be that the PRA or the FCA, or both, decide not to follow the FSA’s policy on Solvency II transposition. By way of example, the PRA may instead decide to follow the approach it is taking to transpose CRD IV. The PRA intends to use CRD IV transposition as the first step towards introducing a new PRA Rulebook, which will eventually replace the existing PRA Handbook. The PRA Rulebook will consist of instruments containing only rules, interpretative provisions and a centralised glossary (see Practice note, Hot topics: UK implementation of CRD IV: Impact on PRA Handbook: the new PRA Rulebook). Until the PRA and FCA publish policy statements to the FSA’s consultation papers, or otherwise communicate their general policy on Solvency II transposition (which is unlikely to happen until the proposed Omnibus II Directive is adopted at EU level), it is unclear what policy position they may take.