Bank of England Outlines Changes to Solvency UK Reporting Requirements

The Bank of England's Prudential Regulation Authority (PRA) has released its policy statement PS18/26, outlining changes to Solvency UK reporting and disclosure requirements. The PRA received six responses to consultation paper CP22/25, which proposed amendments to improve clarity, consistency, and data quality in Solvency UK reporting.

The PRA's final policy includes transitioning to the Nomenclature of Economic Activities (NACE) 2.1 classification for certain reporting templates, introducing reporting changes for third-country branches, and transferring the reporting format of the Matching Adjustment Asset and Liability Information Return (MALIR) templates from Excel to eXtensible Business Reporting Language (XBRL).

The PRA also proposed removing known duplicative reporting and inconsistencies between MALIR and Quantitative Reporting Templates (QRTs), as well as changing the approach to reporting paired assets and derivatives in the MALIR templates.

In Proposal 1 of CP4/26, the PRA aimed to reduce avoidable burden for firms and the PRA by removing the permission requirement for equity-accounted subordinated liabilities to be classified into own funds tiers. The final policy aligns with this proposal, making consequential updates to related reporting and disclosure templates and instructions.