The Solvency 2 Regulations 2015
| Jurisdiction | UK Non-devolved |
(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.(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;
- “college of supervisors” means a permanent but flexible structure for the co-operation, co-ordination and facilitation of decision making concerning the supervision of a group;
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“common management relationship” means a relationship between two or more undertakings which satisfies the following conditions—
- (a) the undertakings are not connected in the manner described in section 1162 of, and Schedule 7 to, the Companies Act 2006, and
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(b) either—
- (i) the undertakings are managed on a unified basis pursuant to a contract with one of them, or provisions in the undertakings' respective memoranda or articles of association, or
- (ii) the administrative, management or supervisory bodies of those undertakings consist, for the major part, of the same persons in office during the financial year in respect of which it is being decided whether such a relationship exists;
- “financial conglomerate” has the meaning given in regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004, as amended by the Financial Conglomerates and Other Financial Groups (Amendments etc.) (EU Exit) Regulations 2019;
- “Financial Conglomerates Directive” means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings, and investment firms in a financial conglomerate, as it had effect immediately before IP completion day;
- “FSC” means the Financial Services Commission of Gibraltar;
- “FSMA” means the Financial Services and Markets Act 2000;
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“Gibraltarian insurance undertaking” means an undertaking which—
- ((a) ) has its head office in Gibraltar;
- ((b) ) is authorised by the FSC to carry on one or more classes of insurance business within the meaning of section 2(1) of the Financial Services (Insurance Companies) Act of Gibraltar; and
- ((c) ) would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;
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“Gibraltarian reinsurance undertaking” means an undertaking which—
- ((a) ) has its head office in Gibraltar;
- ((b) ) is authorised by the FSC to carry on insurance business limited to reinsurance within the meaning of section 2(1A) of the Financial Services (Insurance Companies) Act of Gibraltar; and
- ((c) ) would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;
- “insurance holding company” means a parent undertaking which is not a mixed financial holding company and the main business of which is to acquire and hold participations in subsidiary undertakings, where those subsidiary undertakings are exclusively or mainly insurance or reinsurance undertakings, or Gibraltarian insurance or reinsurance undertakings, or third-country insurance or reinsurance undertakings, at least one of such subsidiary undertakings being an insurance or reinsurance undertaking or a Gibraltarian insurance or reinsurance undertaking;
- “method 1” and “method 2” have the meaning given in rule 1.2 of the Group Supervision part of the PRA Rulebook;
- “mixed-activity insurance holding company” means a parent undertaking other than an insurance undertaking, a third-country insurance undertaking, a reinsurance undertaking or Gibraltarian insurance or reinsurance undertaking, a third-country reinsurance undertaking, an insurance holding company or a mixed financial holding company, which includes at least one insurance or reinsurance undertaking among its subsidiary undertakings or a Gibraltarian insurance or reinsurance undertaking;
- “mixed financial holding company” means a parent undertaking other than a regulated entity, which, together with its subsidiaries, at least one of which is a regulated entity which has its head office in the United Kingdom or in Gibraltar, constitutes a financial conglomerate;
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“non-UK 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 United Kingdom and Gibraltar;
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“parent undertaking” means—
- (a) a parent undertaking, within the meaning of section 420 of FSMA, or
- (b) an undertaking which, in the opinion of the PRA, effectively exercises a dominant influence over another undertaking;
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“participating undertaking” means —
- (a) an undertaking which is either a parent undertaking or other undertaking which holds a participation, or an undertaking linked with another...
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