PRA overview of Solvency II Pillar 3 submissions for smaller insurers

Transcription

1 PRA overview of Solvency II Pillar 3 submissions for smaller insurers Seminar for relevant category 3, category 4, and category 5 firms 22 October 2015

2 Giles Fairhead Agenda Giles Fairhead Elzbieta Woynowska Stephanie Corbett Joanna Rose David Jeacock Giles Fairhead - Objectives - Pillar 3 progress - The Solvency II data flow - The Pillar 3 policy framework - What firms need to submit and when - System overview of the BEEDS portal - Demo of the BEEDS portal - Validation and plausibility - Experiences of the preparatory phase - The PRA s approach to data analytics - Outstanding issues - The future - Next steps for firms - Q&A The session is being recorded and both the recording and slides will be available via links from 2

3 Giles Fairhead Objectives Share the PRA s approach to regulatory reporting with those firms submitting in 2016 for the first time Enable smaller firms to engage with the PRA on Solvency II Pillar 3 issues Set out what firms need to do and when under Solvency II Demonstrate the system that firms will use to submit Solvency II returns Share the PRA s observations of the preparatory phase data submissions 3

4 Giles Fairhead Pillar 3 progress Process around regulatory reporting in development for many years, only 70 days to implementation Many firms have had to submit subset of full QRTs as part of the preparatory phase requirements set out by EIOPA, 103 solos and 34 groups The final requirements are now available and both firms and third parties must work to ensure compliance by implementation 4

5 Giles Fairhead The Solvency II data flow Firm submits QRTs NSTs Qualitative returns Feedback provided to firms on validation and plausibility Re-submissions may be required or further explanation requested BEEDS portal XBRL processor Validation Plausibility EIOPA PRA Supervision Analytics tools 5

6 Reporting and disclosure is integral to Solvency II Three-pillar approach Elzbieta Woynowska Pillar 1 Quantitative requirements Own Funds (including balance sheet) Minimum capital requirement (MCR) Solvency Capital Requirement (SCR) Pillar 2 Qualitative requirements and supervisory review Governance, risk management and required functions Own risk and solvency assessment Pillar 3 Reporting, disclosure and market discipline Supervisory Process Disclosure Transparency Support of risk-based supervision through market mechanisms Pillar 2 Pillar 3 Market-consistent valuation of balance sheet Risk Based requirements Business governance Risk-based supervision Disclosure Transparent markets 6

7 Solvency II policy framework Elzbieta Woynowska Level 1 Framework Directive Solvency II and Omnibus II UK transposition of Directive Published 16 April 2014 Policy Statement PS2/15 published on 20 March 2015 High level requirements setting out framework for Solvency II, and legal basis for the detailed requirements Transposed European requirements plus UK specific national specific templates (NSTs) Level 2 EC Delegated Regulation (Delegated Act) Final revised version published on 30 Sept 2015 Set out the details of the narrative reporting requirements (SFCR, RSR and ORSA) and the deadlines Level 2.5 Implementing technical standards Final draft published on 6 July NB: Undergoing review process by the EC before adoption Quantitative reporting templates (QRTs) Level 3 EIOPA Guidelines Final Guidelines published on 6 July 2015 More detail on the narrative reporting plus the governance requirements on the reporting Level 4 Monitoring compliance and enforcement 7

8 Elzbieta Woynowska Solvency II reporting requirements: Day 1 reporting Quantitative reporting templates - areas Balance Sheet Own funds SCR MCR Group reporting (scope, information about group s undertakings) Narrative reports Valuation explanation of main difference between Solvency II and solvency regime previously in place To be submitted as PDF file, via the BEEDS portal Implementation remarks Mandatory for all firms and groups with year end up to 29 June No exemptions Deadline 20 weeks solo, 26 weeks groups Non December year end firms watch out the reference date is first day of financial year Submit the QRTs in XBRL via the BEEDS portal 8

9 Elzbieta Woynowska Solvency II reporting requirements: Quarterly reporting quantitative reporting templates Quantitative reporting templates - areas Balance Sheet Premium claims and expenses Own funds MCR Assets Technical provisions Group reporting Narrative reports Implementation remarks N/A The first quarter any quarter ending after 1 January 2016 Consider whether your firms is eligible for exemptions; consider also exemptions at group level Submit via the BEEDS portal in XBRL Firms were invited to submit applications from 1 April 2015 for quarterly reporting exemptions where applicable Non-December year end reporting schedules are available at on the Regulatory reporting page 9

10 Elzbieta Woynowska Solvency II reporting requirements: (1/3) Annual reporting Solvency Financial Condition Report Quantitative Reporting Templates - areas Balance Sheet Premium claims and expenses Own funds SCR and MCR Technical provisions Group reporting Narrative reports Business and performance System of governance Risk profile Valuation for solvency purposes Capital management Implementation remarks Submit via the BEEDS portal PDF format, including templates. No XBRL submission for SFCR Single group SFCR - waiver process Firms were invited to submit applications from 1 April 2015 for the Single Group SFCR where applicable 10

11 Solvency II reporting requirements: (2/3) Annual reporting - Quantitative Reporting Templates Elzbieta Woynowska Quantitative Reporting Templates - areas Balance Sheet Premium/claims/expenses Own funds Variation analysis SCR and MCR Assets Technical provisions Reinsurance Group reporting Narrative reports Implementation remarks N/A No exemptions - mandatory at solo and group level Submit via the BEEDS portal in XBRL 11

12 Elzbieta Woynowska Solvency II reporting requirements: (3/3) Annual reporting Regular Supervisory Report (RSR) Quantitative reporting templates - areas Narrative reports N/A Business and performance System of governance Risk profile Valuation for solvency purposes Capital management Group specific information Implementation remarks Full RSR in the first year, and every three years, summary in the intervening years. More information on the process will follow in due course Submit via the BEEDS portal in PDF format The ORSA also needs to be submitted via the BEEDS portal on an annual basis 12

13 Overview of QRTs annual and quarterly templates Elzbieta Woynowska Various Information Balance Sheet /Activities Assets Own funds - Variation Analysis Technical Provisions SCR MCR Long term guarantees Group Specific Reinsurance Content Balance Sheet (SII) List of assets Overview of Own funds Recap - By country / LoB (life / nonlife) Overall SCR (SF, PIM, IM) Non- Composite Impact of transitional measures Undertakings in the scope of the group Facultative covers Basic Information Assets and liabilities by currency Structured products Detailed information by tiers on own funds Futur Cash Flows (life / non-life) Market risk Composite Calculation of the TP transitional Individual requirements Outgoing Reinsurance Program Off-balance sheet items Derivatives Annual movements on own funds Obligations (non life) Counterparty default risk Calcul. of the interest rates transitional Contribution to group TP Share of reinsurers Activity by LoB Income/gains and losses in the period Own funds Variation Variable annuities Underwriting risk (life / nonlife/health) CF by portfolio of MA Intra Group Transactions Special Purpose Vehicles Activity by country Funds - lookthrough approach Triangles Operational risk Information on the calculation of the MA Risk concentration Securities lending and repos Non-life insurance claims Non-Life Catastrophe risk Public disclosure templates in yellow Assets held as collateral Templates on non-life risks BE by currency and country - Non Life Simplification s NB: Some templates need to be broken down at the level of RFF (material) and matching portfolio level 13

14 Elzbieta Woynowska The PRA s approach to reporting and disclosure (1/3) PRA Handbook PS 2/15 Solvency II: a new regime for insurers Appendix 1.5 PRA Rulebook - Reporting Appendix 3 National specific templates and log files NS.01 - With-profits value of bonus NS.02 - With-profits assets and liabilities NS.03 - Material pooling arrangements NS.04 - Assessable mutuals NS.05 - Revenue account life NS.06 - Business model analysis (life) NS.07 - Business model analysis non-life NS.08 - Business model analysis financial guarantee insurers NS.09 - Best estimate assumptions for life insurance risks NS.10 - Projection of future cash flows (best estimate - nonlife: liability claim types) NS.11 - Non-life claim development information (general liability sub-classes) NS.12 - The Society of Lloyd's solvency capital requirement NS.13 - The Society of Lloyd's minimum capital requirement Solo firms will submit relevant NSTs for the first time in May 2017 via the BEEDS portal in Excel format, not XBRL 14

15 Elzbieta Woynowska The PRA s approach to reporting and disclosure (2/3) Further points on NSTs NSTs are not expected to impose material incremental costs on firms In most cases the information required is already produced and used by firms for other purposes Where it is not, the PRA has designed the NSTs in order to ensure that any costs associated with submission of the information are likely to be minimal. If firms consider that their submission of NSTs would meet the statutory tests for a waiver or modification under S138A of FSMA, they may submit a standard waiver application for consideration Any firm considering seeking a waiver or modification is encouraged to speak to their usual supervisory contact, which for some firms will be the PRA Firm Enquiries team, before submitting an application 15

16 Elzbieta Woynowska The PRA s approach to reporting and disclosure (3/3) Supervisory statements: SS11/15 - Solvency II: regulatory reporting and exemptions SS25/15 Solvency II: ORSA and ultimate time horizon non life firms SS26/15 - Solvency II: regulatory reporting internal model outputs SS36/15 - Solvency II: life insurance product reporting codes SS37/15 - Solvency II: internal model reporting codes and components Consultation papers CP25/15 - Solvency II: reporting and public disclosure - options provided to supervisory authorities CP30/15 Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines CP31/15 - Solvency II: third-country insurance and pure reinsurance branches NB: Supervisory statements to be published ahead of Solvency II implementation All available at 16

17 Elzbieta Woynowska Waivers: quarterly reporting The scope of the exemption is set out in SS11/15 - Solvency II: regulatory reporting and exemptions Category 4 and 5 firms may be eligible and firms were invited to submit applications from 1 April 2015 Firms that applied by 30 September 2015 will receive a decision by 1 December Applications submitted later will be considered on a rolling basis Should a firm wish to submit an application the PRA encourages them to speak to their usual supervisory contact, which for some firms will be the PRA Firm Enquiries team There is a standard waiver application form and a supplementary form Instructions and application form are available on the Bank of England s website The PRA may make ad-hoc requests for quarterly reporting from firms that are granted an exemption 17

18 Elzbieta Woynowska Waivers: Single group SFCR, non-disclosure of information in SFCR Firms were invited to submit applications from 1 April 2015 for the Single Group SFCR where applicable Article 53 of the Directive sets out circumstances where a firm may apply to its supervisor for permission not to disclose certain information in its Solvency and Financial Condition Report (SFCR) Firms wishing to apply for approval to not to disclose certain information in their SFCR should submit a completed waiver application form and the supplementary information form requesting a modification of Rule 3.2 in the Reporting Part of the PRA Rulebook Instructions and application form are available on the Bank of England s website 18

19 What will be submitted and when under Solvency II? Elzbieta Woynowska Solvency I Submissions March 2016 Last Solvency I submission Solvency II Submissions Preparatory phase returns Cat 1-3 firms only Day 1 returns All Directive firms and groups Solvency II returns Solos 1 Jul 2015 Annual 25 Nov 2015 Qrtly 20 May 2016 One off 26 May 2016 Q1 25 Aug 2016 Q2 25 Nov 2016 Q3 25 Feb 2017 Q4 19 May 2017 Annual + NST Groups 15 Jul 2015 Annual 6 Jan 2016 Qrtly 1 July 2016 One off 7 Jul 2016 Q1 6 Oct 2016 Q2 6 Jan 2017 Q3 7 Apr 2017 Q4 30 Jun 2017 Annual NB: This diagram shows submission dates for a 31 December year end firm. Non-December year end reporting schedules are available at on the Regulatory reporting page 19

20 Stephanie Corbett The Solvency II data flow Firm submits QRTs NSTs Qualitative returns Feedback provided to firms on validation and plausibility Re-submissions may be required or further explanation requested BEEDS portal XBRL processor Validation Plausibility EIOPA PRA Supervision Analytics tools 20

21 Stephanie Corbett Onboarding to BEEDS portal Terminology Timeline for onboarding BEEDS portal functionality overview Demonstration Common queries during the preparatory phase Contacts 21

22 Stephanie Corbett Terminology BEEDS Firm Principal user Return Plausibility check Repeating data Bank of England Electronic Data Submission A firm can refer to an individual entity or the group as a whole Each firm has one nominated principal user who can create and manage additional users A submission of data to the Bank of England, either as a Solvency II return or as an ad hoc return PRA defined rules used for quality checking, looking for data that seems implausible in the context of other data Data from open tables, columns or rows that follow a set format but the occurrences of tables, columns or rows depend on firm activity e.g. line by line assets (S.06.02) or reporting by country (S.12.01) 22

23 Stephanie Corbett Date Timeline for onboarding Activity 22 October 2015 Overview of Solvency II Pillar 3 submissions for smaller insurers November 2015 End January 2016 January 2016 March 2016 April 2016 Letter to CEOs to inform their firm(s) are in scope and completion of a Solvency II Pillar 3 firm readiness survey via letter CEO asked to nominate a principal user May hold a technical event, subject to interest from firms. The Bank of England hopes to offer a UAT test environment mid/late Q Onboarding pack sent electronically (followed with a paper copy) Updated elearning tutorials available on the Bank of England website Login test, access to the BEEDS portal granted to principal users notification of expected returns 20 May 2016 and 1 July 2016 Day 1 returns due for groups and solos respectively 25 May 2016 and 7 July 2016 First quarterly returns due for groups and solos respectively 23

24 Stephanie Corbett Access to the BEEDS portal CEO will nominate a principal user, the primary contact for the firm The expectation is additional users will be created by the principal user after the onboarding process is complete Users log into the BEEDS portal using two factor authentication; 1. Enter your username and password 2. Enter the received session security code. This is sent to via SMS to the landline or mobile telephone number supplied by the user When an account is created, the user receives a randomly generated password via . This must be changed when the user first logs in. 24

25 Stephanie Corbett Solvency II submissions User will be notified when a return is available for completion User needs to upload data to populate a Solvency II return. This data is subject to a number of checks: 1. File type checks Solvency II return must be an XBRL file (zipped or unzipped) 2. EIOPA validation checks Data that pass all validation checks will be automatically submitted If errors are found they can be viewed on the portal 3. PRA plausibility checks PRA can ask for an explanation for these failures via a plausibility response form User can request a resubmission of a return 25

26 Stephanie Corbett Other BEEDS portal functionality Users can create and complete an ad hoc return Amend group structure Amend general details Occasional submission Amend principal user Additional notes Non-compliance Users can create additional users/ edit existing users for their firm Users can update their user details Users can access useful information in the Resources area of the portal 26

27 Stephanie Corbett Demonstration of the BEEDS portal 27

28 Stephanie Corbett Common queries on the BEEDS portal: data Files should only be uploaded when they are finalised and ready for legal submission Solvency II returns submit automatically if all validation checks have passed. The data will subsequently be checked for plausibility Once submitted, data will no longer be viewable by firms unless plausibility warnings occur Repeating data cannot be viewed on BEEDS Where the same data item is in multiple templates, data will be populated in both places, even if one of the templates is indicated as not reported 28

29 Stephanie Corbett Common queries on the BEEDS portal: accounts Firms are responsible for their own account management and should review regularly Additional users should be created for contingency, a timely response must be received to plausibility questions An amend principal user form should be submitted in advance of someone giving up their role as principal user This should be amended if a member of staff is on long term leave, leaves the organisation or changes role and is no longer the appropriate contact. Using international telephone code 44 means the 0 at the beginning of the telephone number is not required The Bank of England is aware that the session security code can be hard to understand at times when relayed via a speaker to a landline. Have a pen and paper ready and use the repeat option if required, it may be easier to receive the code via SMS to a mobile 29

30 Stephanie Corbett Contacts for the BEEDS portal BEEDS onboarding team Support hours of 8.30am to 5.30pm Monday to Friday Firms can request a support session if further assistance is required For queries relating to validation or plausibility errors, contact the Regulatory Data Group InsuranceData@bankofengland.co.uk For all other BEEDs queries, contact PRA Firm Enquiries: PRA.FirmEnquiries@bankofengland.co.uk

31 Stephanie Corbett Further information The BEEDS portal user guide elearning tutorials are available on the dedicated page of the Solvency II section of the website These materials will be updated in March 2016 For enquiries that do not relate to BEEDS, firms should liaise with their usual PRA supervisory contact, which for some firms will be the PRA Firm Enquiries Function 31

32 The preparatory phase submissions Joanna Rose Solvency I Submissions March 2016 Last Solvency I submission Solvency II Submissions Preparatory phase returns Cat 1-3 firms only Day 1 returns All Directive firms and groups Solvency II returns Solos 1 Jul 2015 Annual 25 Nov 2015 Qrtly 20 May 2016 One off 26 May 2016 Q1 25 Aug 2016 Q2 25 Nov 2016 Q3 25 Feb 2017 Q4 19 May 2017 Annual + NST Groups 15 Jul 2015 Annual 6 Jan 2016 Qrtly 1 July 2016 One off 7 Jul 2016 Q1 6 Oct 2016 Q2 6 Jan 2017 Q3 7 Apr 2017 Q4 30 Jun 2017 Annual NB: This diagram shows submission dates for a 31 December year end firm. Non-December year end reporting schedules are available at on the Regulatory reporting page 32

33 Joanna Rose The preparatory phase achievements Firms and national supervisory authorities are gaining familiarity with taxonomy and the use of XBRL Opportunity for detailed industry engagement Issues Systems testing Supervisors are familiarising themselves with their firms Solvency II preparatory phase data submissions Firms can take steps to improve data quality ahead of Solvency II The PRA is developing it data analytics solutions in advance of Solvency II 33

34 Joanna Rose The Solvency II data flow Firm submits QRTs NSTs Qualitative returns Feedback provided to firms on validation and plausibility Re-submissions may be required or further explanation requested BEEDS portal XBRL processor Validation Plausibility EIOPA PRA Supervision Analytics tools 34

35 Joanna Rose Data validation Legal requirement to pass the filing rules and EIOPA validations Legally submitted once passed EIOPA validations The Bank of England is required to perform additional data quality checking Introducing automated BoE validation checks over time these will be published on our website before they are introduced RDG knowledge and capability will mature in the coming years The focus of the checking will evolve as more data becomes available 35

36 Joanna Rose Plausibility checking Plausibility checks are not pass/fail checks for example: May look at changes over time, initially from one period to another Might look at ratios falling outside of reasonable thresholds Identifying data moving from zero to a value, or vice versa The Bank of England does not release its plausi rules, and not all checks flagged will be raised with firms They are checks made by the Bank of England to ensure high quality data for supervisory judgement The checks will evolve as data quality matures/improves 36

37 Joanna Rose PRA feedback on preparatory phase - summary Submission of preparatory phase data generally went well Aided by involvement of firms participating in testing sub-group and testing of XBRL files ahead of submissions Discussions at IWG demonstrated that firms had been working for some time to ensure compliance - these preparations paid off Returns received by 103 solo firms and 34 groups EIOPA 80% target achieved Only EIOPA data validation checks and limited plausibility checking took place this will increase from 2016 and build year on year as the PRA gathers more data and gains more experience 37

38 Joanna Rose PRA feedback on preparatory phase data submission BEEDS portal launched and firms successfully on boarded on time Considerable focus on working with firms on quality of XBRL ahead of submission deadline without this many firms would have been unable to submit their returns as the XBRL would not have been of high enough quality all firms must work with their vendors to ensure XBRL files meet requirements, including EIOPA filing rules The PRA hopes to offer a UAT test environment in mid/late Q so that firms can test their XBRL files to ensure they meet the requirements 38

39 Joanna Rose PRA feedback on preparatory phase data quality There were three distinct stages where data quality issues were found: 1. Automated EIOPA validation checks upon firm submission No significant issues, in the preparatory phase. However EIOPA had turned off a lot of the checks prior to the submission deadlines. More issues expected in the future as more checks become active. 2. Plausibility checks undertaken by Bank of England regulatory data specialist team Limited number of checks currently exist, this will increase In particular lack of reference data mean comparative data checks difficult Key area of significant weakness was asset data quality 3. Analytical review by firm supervisors and other Bank of England staff via data analytics tools New analytics tool and team now established Significant investment in tools to analyse the data, therefore firms should expect an increase in feedback from their supervisors Developing dedicated asset analysis tools 39

40 Joanna Rose PRA feedback on preparatory phase data quality Focus on asset data List of assets form (S.06.02) provides a much more detailed analysis than under current regime Some firms submitted up to 100k rows of asset data across 30 columns, with over half a million rows of data collected across all preparatory phase submissions Checks found the following common issues: A mixed approach to providing information on asset issuer Different approaches to categorisation Over-use of other category Incomplete data sets re corporate bond credit ratings and sector information NACE codes, CIC, LEIs 40

41 Joanna Rose Taxonomy information (1/2) Final taxonomy v2.0.1 for reporting is due for publication 21 October EIOPA publish all the material related to the taxonomy and reporting requirements at Key artefacts on this page are: DPM dictionary Annotated templates (slightly different to logs as they describe how the information shall be reported) List of validations EIOPA filing rules 41

42 Joanna Rose Taxonomy information (2/2) Filing rules constrain the use of XBRL The Bank of England has published a Solvency II XBRL filing manual, based on the EIOPA filing rules at It will be updated and republished in January 2016, after implementation of Solvency II This manual includes clarifications on the EIOPA filing rules worked examples resolutions to common issues an explanation of some of the technical error messages from BEEDS All MUST filing rules will be enforced on submissions to BEEDS 42

43 Dave Jeacock The Solvency II data flow Firm submits QRTs NSTs Qualitative returns Feedback provided to firms on validation and plausibility Re-submissions may be required or further explanation requested BEEDS portal XBRL processor Validation Plausibility EIOPA PRA Supervision Analytics tools 43

44 Dave Jeacock PRA s approach to data analytics Major investment in analytical tools Upscales the PRA s analytical capabilities Ring-fenced internal resources Multi-year project Analysis of the Solvency II regulatory data is a key focus for the PRA and will drive supervisory capabilities Step change that will revolutionise the PRA s quantitative analysis, management information and analytical capability Three year analytics development plan currently being drawn up by dedicated analytics team to continue to roll out tools, MI and analysis to Bank users 44

45 Dave Jeacock The tools that are currently in use Supervisors now have access to tools and their analysis of the data has begun Currently three tools either available to users or in the final stages of testing Tool to analyse solo returns Tool to analyse group returns Tool to analyse assets data 45

46 Dave Jeacock Tool development Aligned to data submissions and the PRA s Solvency II supervisory requirements Asset tools Quarterly and annual monitoring Sector/peer group analysis Specific category tools e.g. monitoring and early warning indicators for Cat 4 and 5 firms Increasing use of Bank wide and externally sourced data alongside Solvency II data The PRA s data analytics tools will mature over time as the data embeds 46

47 Giles Fairhead The PRA s regulatory reporting industry engagement The PRA set up its Solvency II regulatory reporting industry working group late 2013, and a testing sub-group in October 2014 They have met regularly and meeting notes are available on the dedicated page of the Bank of England s website: Questions and answer documents are available on the Detailed technical information page of the Bank of England s website: The Bank of England published its Solvency II XBRL filing manual in May 2015 and updated it in September It will be re-published again in January 2016 Firms are encouraged to familiarise themselves with the information that the Bank of England has made available. Industry engagement will continue past Solvency II implementation to encourage firms to focus on submitting high quality Solvency II data 47

48 Giles Fairhead PRA position on outstanding issues Proportionality and materiality The Delegated Act will be incorporated directly into the UK approach and it is therefore difficult to provide prospective national guidance on how materiality should be interpreted as it creates a legal risk for the PRA The PRA will ensure EIOPA understand the desire for further guidance in this area Firms are encouraged to continue to raise concerns and questions with EIOPA (for example through the ABI and CFO Forum) Firms are reminded that they need to decide on their use of thresholds and approach, taking into account their current circumstances and environment they operate in 48

49 Giles Fairhead PRA position on outstanding issues Audit of Solvency II regulatory returns EIOPA issued a statement supportive of the external audit of Solvency II reporting The PRA anticipates that, to some extent, there will be an audit requirement of firms public regulatory reporting for solos and groups. Audit opinion would be properly prepared in all material respects, in accordance with the Solvency II regulatory framework. The PRA will consult in Q Scope currently discussion, broadly in line with the draft EIOPA guidelines, but internal model and partial internal model SCR subject to further considerations. The PRA s initial view: Valuation and capital management sections of the Solvency and Financial Condition Report (SFCR) Balance sheet and own funds templates Solvency capital requirement templates for insurers on standard formula Approvals granted to undertakings by the PRA will be out of scope SCR for firms using approved models will be out of scope impact on risk margin in technical provisions in balance sheet Private reporting will be out of scope S166 49

50 Giles Fairhead Tool 4 Undertakings A number of firms appear to be using T4U for either reporting or testing Majority are using it for testing their files EIOPA will no longer develop or support this tool Intention is to move it to an open-source model Discussions with market have started Future is not clear Firms that use it should make contingency plans Market has a range of Solvency II reporting tools available EIOPA s aim of preparing the market has largely been achieved 50

51 Giles Fairhead The future Once Solvency II is implemented firms need to stay informed of developments in the Pillar 3 requirements EIOPA changes Taxonomy releases, one to two per year, major/minor Increasing data quality and PRA analytics capability, data will take time to embed Increased granularity on assets/derivatives data Greater consistency of data sets e.g. Network Rail and codes, e.g. in the years to come NACE/LEI/CIC The PRA may introduce further NSTs, subject to the usual consultation process 51

52 Giles Fairhead Next steps November 2015 End January 2016 Mid/late Q March 2016 April May 2016 onwards Letter confirming firms in scope and firm readiness survey CEO nominates principal user Technical event and potential UAT test environment available Onboarding pack available to firms as well as elearning tutorials Login test, access for firms to BEEDS portal + notification of expected returns Day 1 submission and first quarterly submission deadlines Solos: Day 1 submission 20 May 2016, first quarterly submission 26 May 2016 Groups: Day 1 submission 1 July 2016, first quarterly submission 7 July 2016 NB: These submission dates refer to a 31 December year end firm. Non-December year end reporting schedules are available at 52

53 Giles Fairhead Where to find more information (1) Access the latest News on Solvency II: (2) To find the latest information on regulatory reporting navigate to the Preparing section and then (3) the Pillar 3 pages Five pages of Pillar 3 information: Regulatory reporting Industry working group Taxonomy Detailed technical information BEEDS portal Questions should be ed to PRASIIRegulatoryReporting@bankofengland.co.uk 53

54 Questions 54