The Prudential Regulation Authority (PRA) has published a statement stating that it has identified and rectified an error in the recently published Solvency II restatement of assimilated law. The error was in rule 3B6.6(1) in the Solvency Capital Requirement - Standard Formula (SCR-SF) Part of the PRA Rulebook published in Policy Statement 15/24. The rule incorrectly included a reference to Regulated Activities Order (RAO) Schedule 1, Part II, class III ('Linked long-term') business, which should be subject to a 70% stress for mass lapse life underwriting risk. The rule instrument correcting the error will take effect on 31 December 2024.

The Prudential Regulation Authority (PRA) has published consultation paper CP19/24, which proposes new liquidity reporting requirements for large life insurers and reduces the reporting expectations for firms using internal models. These reforms, developed with input from the Association of British Insurers (ABI) and other stakeholders, aim to address gaps in liquidity risk management that were highlighted by recent market stress events such as the Covid-19 pandemic and the liability-driven investment(LDI) crisis. The proposals include new templates for reporting cash flow mismatches, committed facilities, and liquidity market risk sensitivities. Responses are sought by 31 March 2025. The proposed implementation date for these changes is 31 December 2025.

The European Commission has adopted a delegated regulation supplementing article Article 7a of the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (EMIR) (as introduced by Regulation  (EU 2024/2987) (EMIR 3)) containing regulatory technical standards (RTS) for active account requirements. The delegated regulation implements EMIR 3 provisions intended to reduce financial stability risks from EU exposure to third-country central counterparties by requiring certain counterparties to maintain operational active accounts at EU CCPs. The rules establish operational conditions including IT connectivity and stress testing requirements, representativeness obligations for euro and Polish zloty interest rate derivatives, and six-monthly reporting requirements to competent authorities.

The Housing Ombudsman Service has published its latest severe maladministration report. This report shares valuable insights from social housing decant cases, highlighting key lessons to enhance landlord services and safeguard residents' well-being. As social housing providers strive to deliver safe and secure homes for millions, this report offers critical guidance. Timed ahead of the introduction of Awaab's Law, which sets new standards for temporary moves involving health and safety risks, this report prepares landlords for the upcoming legislation. Key takeaways includes streamlining processes to minimize resident stress and anxiety and fair treatment of subsistence costs, such as food and travel expenses.

This week's edition of Insurance & Reinsurance weekly highlights includes: COVID-19 business insurance litigation returns with test case appeal; the case of Tyson International Company Ltd v GIC RE, India Corporate Member Ltd (sued as the sole corporate member for Syndicate 1947 at Lloyd's of London for the 2021 and 2022 years of account); UK property insurance claims highest since 2007; an update to the Flood Reinsurance (Amendment) Regulations 2025; UK insurance premium tax haul up 10%, hits record £6.7bn; BoE delivers speech on new stress test approach for banks and other parts of the financial sector; FCA and PRA respond to UK government’s call for regulators to support economic growth; FCA urged to act against high insurance claim rejections; Insurance brokers call for reduced regulatory burden; Why non-financial misconduct should be on firms’ radar; Insurance Europe submits responses to EIOPA's Solvency II review consultations; Closing the gap–EIOPA and ECB announce proposals to close insurance protection gap; cases and decisions; key dates for your diary; and other news highlights reported over the past week.

On 20 November 2024, the Pensions Regulator (TPR) published a standalone finalised version of the Fast Track tests and conditions. This document, which was previously published as Appendix 1 of TPR’s response to Fast Track and regulatory approach consultation, sets out the parameters a DB scheme must satisfy when submitting an actuarial valuation (being a valuation with an effective date on or after 22 September 2024) under the Fast Track route. In broad terms, the Fast Track route has parameters relating to funding and investment stress, technical provisions, investment risk and the recovery plan. When finalising the Fast Track parameters, TPR made some minor alterations, among other things, to clarify its intentions.

A round-up of financial services developments, including (among other things): EU bodies reach provisional agreement on simplified sustainability reporting and due diligence.

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on whether new or emerging generating technologies could contribute to security of electricity supply and participate in future Capacity Market auctions. DESNZ is seeking evidence on technologies that have emerged since the 2025 review, are not already included in a Generating Technology Class and could support electricity supply during periods of system stress. This may include evidence on their commercial viability, reliability, controllability, energy sources and operating limits, and whether they require a separate technology class. The consultation closes on 4 October 2026.

The International Organization of Securities Commissions (IOSCO) has published its final report and implementation guidance on revised recommendations for liquidity risk management for collective investment schemes. This move follows extensive work to put into operation the Financial Stability Board’s (FSB) December 2023 guidance on addressing structural vulnerabilities caused by liquidity mismatch in open-ended funds. The final report sets out 17 recommendations across six sections: the design process, liquidity management tools and measures, day-to-day practices, stress testing, governance, and disclosure of relevant information to investors and authorities. The implementation guidance offers detailed instructions and best practices to support these recommendations.

The Building (Higher-Risk Buildings Procedures) (Wales) Regulations 2025 (Welsh Regulations), SI 2025/1321 came into force on 1 July 2026. They bring in the detailed procedural regime governing the design, construction and completion of HRBs in Wales. The Welsh Government has issued guidance on meeting building control requirements for HRBs. This Checklist is a practical guide for construction lawyers on key considerations to help their clients understand and ensure compliance with the HRB regime in Wales. For more information on the Welsh Regulations, SI 2025/1321, see Practice Note: The Building (Higher-Risk Buildings Procedures) (Wales) Regulations 2025: practical guidance for construction lawyers. Considerations for construction lawyers For construction lawyers, effective advice on the Welsh Regulations is a means of reducing risk, delay and exposure for clients. This can be achieved by

A round-up of financial services developments, including (among other things) BoE Market Notice 11 sets out changes to collateral eligibility in the Sterling Monetary Framework.

The Council of the EU has unanimously approved conclusions on a farmer-focused post-2027 Common Agricultural Policy (CAP). The conclusions emphasise maintaining the CAP's two-pillar structure, call for dedicated resources, and stress the need for simplified procedures. Key focus areas include improving farmers' position in the food supply chain, supporting young farmers, providing incentives for the green transition, and crisis-proofing agriculture. The Council has urged the European Commission to consider these conclusions when preparing future CAP legislative proposals and the upcoming Vision for Agriculture and Food.