Prudential Regulation Authority Rulebook

13A.1

A firm with internal model permission must annually carry out an analysis comparing the change in:

1. (1) the firm’s SCR as at the firm’s most recent financial year end; and
2. (2) (subject to 13A.2) the firm’s SCR as at the firm’s previous financial year end.

13A.2

Where, a firm receives an internal model permission for the first time which takes effect part way through its financial year, the firm must compare its SCR as at the end of that financial year with the SCR that would have been calculated as at the firm’s previous financial year end, if the firm’s internal model permission had taken effect at that time.

13A.3

The analysis referred to in 13A.1 must include reasons, and documentary evidence to support those reasons, explaining any change in SCR.

13A.4

Commencing with the firm’s first financial year end on or after 31 December 2025, or if the firm first receives an internal model permission which takes effect after 31 December 2025, commencing with its first financial year end after the date that internal model permission took effect, the firm must submit the analysis, reasons and documentary evidence in 13A.1 to 13A.3 to the PRA as part of the information reported under Reporting 2.

13A.5

13A.1 applies to a firm in respect of each of its financial years ending on or after 31 December 2024 or, if the firm first receives an internal model permission which takes effect after 31 December 2024, each of its financial years ending on or after the date that internal model permission took effect.