Lisa Leaman (Head of Division, London Markets at the PRA) has delivered a speech on developments in the bulk purchase annuities (BPA) sector. Highlights include:
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Solvency II reforms to the matching adjustment (MA) – further to its 2023 consultation, the PRA is on track to publish its policy statement and final rules on the reforms in early June, with these due to be implemented by 30 June 2024. The PRA recognises that implementation by this date may be challenging for some firms and so the policy statement will confirm the date(s) on which new requirements will take effect, and whether early adoption will be possible on a voluntary basis. Firms will also not be required to reapply for permission to apply the MA under the Solvency UK regime where permission has already been granted under Solvency II.
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Sandboxes – these are new proposals which the PRA has not considered as part of its consultation on MA reforms. The PRA is open to new ideas on sandboxes but one proposed model is t