PRA, BaFin and Disclosure - Grüne with envy...

Without being hypercritical, it occured to me that the PRA appear to be keeping materials and opinions "on the downsie" at a time where perhaps the industry would benefit from their overexposure, and I can't work out why.

A few things triggered that thought over the last week;

• The Internal Model Validation presentation delivered by a PRA representative to the Institute of Risk Management's Solvency II group, which publicly elaborates on the topic more than anything I have seen on the PRA site.
• The apparent failure of the PRA to follow their own Terms of Reference for their recently convened Regulatory Reporting Industry Working Group by not publishing the minutes of the December meeting yet. The TORs say 10+2 working days, and I can't find them anywhere!
• The recent overwrite of the PRA's initial response document to EIOPA regarding "comply or explain" for EIOPA's Preparatory Guidance, which has not yet been "explained" to the industry they oversee! (Well spotted John Walton)
• The almost diametrically opposed position which BaFin have taken over in Germany, where they unequivocally lay out their intentions regarding "comply or explain".

It is worth expanding on the last point, bearing in mind what a useful piece of text it is for anyone looking to confirm within their own Programme how best to interpret EIOPA's guidelines. BaFin explicitly state;

• Insurers should "immediately take the necessary steps" to implement the Preparatory Guidelines.
• That "undertakings are effectively the target audience" for the Preparatory Guidance, which I am delighted to see acknowledged publicly by such a significant participant.
• It is up to each insurer to determine the order of their implementation activity prior to 2016.
• That, for the benefit of the industry, BaFin have carved up the Guidance into 15 blocks, and will provide "additional information and tips" periodically over the next two years.
• That a special activity for Life Insurers will take place, one suspects in order to help identify the capital shortfalls hinted at at the back end of last year for those with high cost of guarantees.
• That everyone is expected to participate in the QRT exercise, ignoring the thresholds offered by EIOPA to the NCAs.
• That they will be translating any EIOPA texts released prior to 2016 in English-only into German.

Whilst it may be a case of thinking das gras ist grüner, it would be easy to envy the German contingent when offered this level of disclosure and certainty in dealing with the preparatory phase. What say you, Moorgate?