Prudential Regulation Authority Rulebook

5.1

The branch scheme of operations must set out the following:

1. (1) the nature of the risks or commitments which the third country branch undertaking proposes to cover;
2. (2) the guiding principles as to reinsurance;
3. (3) estimates of the future branch SCR on the basis of a forecast balance sheet, as well as the calculation methods used to derive those estimates;
4. (4) estimates of the future branch MCR, on the basis of a forecast balance sheet, as well as the calculation method used to derive those estimates;
5. (5) the state of the eligible own funds with respect to the branch SCR and branch MCR;
6. (6) estimates of the cost of setting up the administrative services and the organisation for securing business, the financial resources to meet those costs and, where the risks to be covered are classified under paragraph 18 of Part 1 of Schedule 1 to the Regulated Activities Order, the resources available for the provision of assistance;
7. (7) information on the structure of the system of governance; and
8. (8) for the first three financial years:
1. (a) a forecast balance sheet;
2. (b) estimates of the financial resources intended to cover branch technical provisions, branch MCR and branch SCR;
3. (c) for general insurance business:
1. (i) estimates of management expenses other than installation costs, in particular current general expenses and commissions;
2. (ii) estimates of premiums or contributions and claims under any contract of insurance; and
4. (d) for long-term insurance business:
5. a plan setting out detailed estimates of income and expenditure in respect of direct business, reinsurance acceptances and reinsurance cessions.

[Note: Art. 162(2) and Art. 163(1) and (2) of the Solvency II Directive]