Prudential Regulation Authority Rulebook

1.1

This Prudential Regulation Authority (PRA) supervisory statement is relevant to firms in scope of Solvency II, including the Society of Lloyd's (collectively 'insurers' or ‘firms’ throughout the SS), and the auditors of those firms.^[1] It reminds the governing body of its responsibilities in respect of the ongoing appropriateness of the information disclosed, and that it must approve the Solvency and Financial Condition Report (SFCR). It also sets out the level of assurance expected with respect to the external audit requirement on the SFCR and the audit guidance that the PRA expects auditors to follow in auditing a firm’s SFCR. It should be read alongside the External Auditors Part of the PRA Rulebook. The parts of this supervisory statement that relate to the external audit of the SFCR are not applicable to 'small insurers for external audit purposes' and 'small groups for external audit purposes', as set out in External Audit 1.1.

1.2

By clearly and consistently explaining its expectations of insurers and audit firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders.^[2] The PRA is legally required, so far as is reasonably possible, to facilitate effective competition in the markets for services provided by PRA authorised persons in carrying on regulated activities. The PRA has considered matters to which it is required to have regard, and it considers that this supervisory statement is compatible with the Regulatory Principles and relevant provisions of the Legislative and Regulatory Reform Act 2006. This supervisory statement is not expected to have any direct or indirect discriminatory impact under existing UK law.