A draft of the Solvency 2 (Group Supervision) (Amendment) Regulations 2021 was laid before Parliament on 15 November 2021, alongside a draft explanatory memorandum. The regulations are part of the measures being taken to address deficiencies in UK law after leaving the European Union.
The draft regulations amend provisions (regulations 24-26 and 28) of the Solvency 2 Regulations 2015 (SI 2015/575).
The changes have the effect that if a third country is equivalent for group supervision purposes (as determined in accordance with the Solvency 2 Regulations) the PRA – as group supervisory of an insurance group with a parent in a third-country deemed equivalent – can defer to the supervisory authority in the third country. The UK government believes that this may bring advantages to UK insurance groups with a parent in a third country as it can enable a reduction in unnecessary duplicative supervisory work. As the current version of the regulations stand there is no ability for the PRA to defer to a group supervisor in a third country.
The regulations are due to come into force on 24th January 2022.