Final report on revised GLs on ring-fenced funds - Solvency II Review

The Solvency II review will allow undertakings using the matching adjustment (MA) to assume full diversification between their MA portfolio and the rest of the undertaking when calculating their Solvency Capital Requirement (SCR), provided that the undertaking’s best estimate of insurance and reinsurance obligations does not form a ring-fenced fund. The Guidelines on ring-fenced funds have been updated to ensure consistency with the amended legal framework and to clarify that not all MA portfolios will be treated as ring-fenced funds.

The Guidelines will become applicable on 30 January 2027. Until then, the Guidelines issued in 2015 are applicable.