10.1 In developing the proposals set out in this CP, the PRA has considered its objectives and a range of key factors that contribute to the cost benefit analysis (CBA). The baseline for the CBA is the current onshored legislative framework as supplemented by PRA Rulebook material in force, together with the anticipated legislation in line with the Government's November 2022 statement. The PRA has therefore only considered the impact of changes that may arise from its proposals including using data provided during the period of the Solvency II Review. The PRA welcomes feedback on this analysis to inform its final policy decisions.
10.2 The table below summarises the baseline for each area of reform.
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Table 3: Baseline for CBA underlying each proposal |
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Area of reform |
Baseline for the CBA |
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Investment flexibility |
The baseline is expected legislation, which permits the inclusion of assets with HP cash flows into MA portfolios where there is no material risk to the quality of m |