In anticipation of the passing of the FSM Bill, Treasury has published drafts of two Statutory Instruments designed to make the current Solvency II regime more tailored, clearer and simpler. The Government has stated its wish to put legislation reforming the risk margin in place by the end of 2023, is hoping to put reforms to the matching adjustment in place by mid 2024, with the remainder of the regime coming into force by the end of 2024. To aid early discussion and negotiation, it has published its two draft instruments now, noting that anything not restated or saved under these pieces of legislation will be replaced with new PRA rules.
