Prudential Regulation Authority Rulebook

4.1

The PRA may, until 31 December 2017, require a firm to apply the percentages referred to in Minimum Capital Requirement 3.3 to the firm’s SCR calculated in accordance with the standard formula. An example of when the PRA may require this would be where the output from the firm’s internal model has deviated from the firm’s risk profile and where the standard formula provides a better fit to the firm’s risk profile.