Prudential Regulation Authority Rulebook

5.1

In the event of any major development affecting significantly the relevance of the information disclosed in accordance with:

1. (1) 3.3 to 3.8; or
2. (2) 4.1;

a firm must disclose publicly appropriate information on the nature and effects of that major development.

[Note: Art. 54(1) of the Solvency II Directive]

5.2

Without limiting the general application of 5.1, for the purposes of that rule the following will be regarded as a major development:

1. (1) non-compliance with the MCR by the firm and either the PRA considers that the firm will not be able to submit, or the PRA does not receive within one month of the date of observation by the firm of non-compliance with the MCR, a finance scheme in accordance with Undertakings in Difficulty 4.1; and
2. (2) significant non-compliance with the SCR by the firm and the PRA does not receive, within two months from the date when non-compliance with the SCR was first observed by the firm, a recovery plan as required by Undertakings in Difficulty 3.1(2).

[Note: Art. 54(1) of the Solvency II Directive]

5.3

Where the circumstances described in 5.2(1) or 5.2(2) arise, the firm must immediately publicly disclose the amount of non-compliance with the MCR or SCR as the case may be, together with an explanation of the origin and consequences of that non-compliance, and a description of any remedial measures taken.

[Note: Art. 54(1) of the Solvency II Directive]

5.4

Where compliance with the MCR has not been restored by a firm within three months after the first observation of non-compliance by the firm, then the firm must publicly disclose at the end of that three-month period the non-compliance with the MCR, together with an explanation of the origin and consequences of that non-compliance, a description of any remedial measures taken and of any further remedial measures planned.

[Note: Art. 54(1) of the Solvency II Directive]

5.5

Where compliance with the SCR has not been restored by a firm within six months after the first observation of non-compliance by the firm, then the firm must publicly disclose at the end of that six-month period the non-compliance with the SCR, together with an explanation of the origin and consequences of that non-compliance, a description of any remedial measures taken and of any further remedial measures planned.

[Note: Art. 54(1) of the Solvency II Directive]