Calculation of the Equity Risk Sub-Module and Application of the Symmetric Adjustment Mechanism | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Solvency Capital Requirement - Standard Formula

Chapter

Calculation of the Equity Risk Sub-Module and Application of the Symmetric Adjustment Mechanism

Printed on: 01/06/2025

Rulebook at: 10/05/2025


4

Calculation of the Equity Risk Sub-Module and Application of the Symmetric Adjustment Mechanism

4.1

For the purposes of calculating the equity risk sub-module referred to in 3.11(2)(b), a firm must apply a symmetric adjustment to the standard equity capital charge to cover the risk arising from changes in the level of equity prices.

[Note: Art. 106(1) of the Solvency II Directive]

  • 01/01/2016