3

Ancillary own-funds (Guidelines 1–6)

3.1

These Guidelines complement the Solvency II Regulations. In particular, they complement Commission Delegated Regulation (EU) 2015/35 (‘the Delegated Regulation’)[8] and Commission Implementing Regulation (EU) 2015/499[9] in respect of the criteria for the approval of and the application procedures for ancillary own-funds (AOF). Firms should refer to the checklist for AOF applications[10] and consider its relationship with the AOF Guidelines when preparing their applications.

Footnotes

3.2

Guidelines 5 and 6 identify the need for firms and the PRA to monitor on an ongoing basis the ability of an AOF item to satisfy the criteria for approval. Firms should engage with their usual supervisory contact at an early stage where any changes might affect the status or loss-absorbing characteristics of an approved AOF Item.