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RSR submissions for year-end 2020 onwards

Solvency II
EU / European Parliament / EIOPA, Governance, risk & compliance, Life insurance, Mutuals

25 June 2020

In keeping with managing the burden on firms' resources, the PRA considers that the existing Regulatory Supervisory Report (RSR) cycle will continue. Effectively, in terms of future submissions, whatever was intended to be submitted for year end 2010 is treated as having been submitted - there is no re-setting. The intended submission for year end 2020 is therefore as the position before Covid-19 measures were announced.  

A RSR summary should set out "...any material changes that have occurred in the undertaking's business and performance, system of governance, risk profile, valuation for solvency purposes and capital management over the given financial year, and provide a concise explanation about the causes and effects of such changes" (Article 312(3) of the Delegated Regulation). 

The PRA's update of 24 June 2020 in full: 

On Monday 23 March 2020, the PRA announced that as part of the Bank’s response to Covid-19, the Regulatory Supervisory Report (RSR) is not required for year-end 2019. This applies to firms with a Tuesday 31 December 2019 year-end, or year-ends after that date but before Wednesday 1 April 2020.  

This update provides clarification for RSR submissions for year-end 2020 onwards.  

The PRA considers that the existing RSR cycle (namely, a full report at least every three years and in summary every year) will continue. Therefore, firms with year-ends Tuesday 31 December 2019 or after that date but before Wednesday 1 April 2020 that were due to submit a full report for year-end 2019 will be required to submit summary reports for year-end 2020 and year-end 2021, and a full report for year-end 2022. 

In line with the update on 16 April 2020 below, the PRA considers Covid-19 to be a major development, and therefore would expect year-end 2020 RSR reports to include information on the impact of Covid-19. 

David Gray, Consultant Actuary, comments: “This is good news as it means that no additional work will be required in terms of RSR submissions (aside from appropriate coverage of Covid-19 issues).  

https://www.bankofengland.co.uk/prudential-regulation/publication/2020/covid19-regulatory-reporting-amendments 

David Gray

For more information
David Gray
Consultant Actuary

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