7
Verification of calculations
7.1
The PRA expects that the calculation of the TMTP and the resulting quantum of the deduction, and similarly, any calculation using the transitional measure for the risk-free interest rates and the resulting quantum of the deduction that the use of these risk-free interest rate implies, will be overseen by the audit committee of the firm. The chair of the audit committee will be asked to provide written confirmation to the PRA that the numbers are suitable for use and meet the requirements of the written notice. This should be done for the opening Solvency II balance sheet, repeated after any recalculations are performed, and on an annual basis. For the annual review, where no recalculation has been performed in between periods, the audit committee is only required to confirm that there has been no change in risk profile that would have required a recalculation, and that the TMTP has been appropriately reduced in line with Solvency II requirements.
- 25/11/2016