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PRA issues second part of equity release solvency paper

The prudential regulation authority has released the second part of its Solvency II: Equity release mortgages consultation paper.

It aims to give further details on how the PRA expects firms to perform an effective value test, which is used to assess the risk of holding an equity release mortgage portfolio.

Specifically, the latest consultation asks for views on when and in what form the PRA would review and publish the values and parameters used to conduct EVTs, how other assets can be incorporated into the test, the frequency that the tests should be carried out, and how the PRA would assess the ways in which firms model risks as part of the EVT.

These proposals are all responses to questions asked of the PRA upon the publication of an earlier part of the consultation in December 2018, which detailed feedback to responses given to a paper release in early July of that year.

A further consultation in the current paper is sought regarding how the loan value plus accrued interest factor can be calculated when the amount due at exit is not known.

The consultation finishes on Wednesday 3 July.


FCA and PRA issue mortgage reporting consultation paper

The financial conduct authority and the prudential regulation authority have launched a joint consultation paper regarding new reporting requirements for mortgage lenders and home finance administrators. The purpose of the consultation is to gather more data for use by the FCA, PRA and the Bank of England at large, because the former two believe that […]


PRA issues equity release solvency policy statement

The prudential regulation authority has issued an update to its Solvency II: Equity release mortgages consultation paper. The new publication offers feedback to responses given to the original consultation paper, released in early July of this year, which sought views on how to provide “greater clarity” for insurers and reinsurers when assessing the risk “arising […]


Mortgage borrowing figures dip: BoE

Net mortgage borrowing fell to £3.5bn in February, down slightly from the £3.6bn posted in January, and lower than the six-month average of £3.8bn, according to data from the Bank of England. The data also shows that the number of approvals for house purchases also fell, from 66,700 in January to 64,300 in February, dropping […]


Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.


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