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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

excess surplus

    (a) 10040a firm that is not a Solvency II firm100 will have an excess surplus in a with-profits fund if, and to the extent that:

      1. 100(i)100 the regulatory surplus41100 in that with-profits fund; and
      1. 100(ii)100 any other financial resources applied to, or expected to be applied to, that with-profits fund;

    exceed:

      1. 100(iii)100 the amount required to meet the higher of any regulatory capital requirement or the firm's individual capital assessment (at the firm's own risk appetite) for existing business; and
      1. 100(iv)100 any further amount necessary to support the new business plans of that with-profits fund.

    (b) a Solvency II firm will have an excess surplus in a with-profits fund if, and to the extent that:100

      1. (i) the with-profits fund surplus in that with-profits fund; and100
      1. (ii) any other financial resources applied to, or expected to be applied to, that with-profits fund;100

    exceed:

      1. (iii) the amount required to meet the higher of any notional SCR in relation to that with-profits fund and any capital provision determined in relation to the with-profits fund at the firm's own risk appetite, as reflected in the firm's own risk and solvency assessment carried out from time to time as detailed in the PRA Rulebook: Solvency II Firms: Conditions Governing Business rules 3.8 to 3.10; and100
      1. (iv) any further amount necessary to support the new business plans of that with-profits fund.100