PRA outlines tough new approach to solvent schemes and capital extraction

Adam Bogdanor, partner in Berwin Leighton Paisner LLP

In two new “supervisory statements” published on April 25, the UK’s Prudential Regulatory Authority (PRA, pictured) has confirmed it intends to take a tougher approach to solvent schemes of arrangement than under the previous Financial Services Authority (FSA) regime and has outlined a new, cautious approach to attempts by non-life insurance firms in run-off to pay capital to their shareholders.