In November 2022, HM Treasury (HMT) published its response to the Solvency II consultation, setting out its final package for reforming the prudential regulation of the UK insurance sector.
The following month, the Chancellor of the Exchequer positioned these proposals alongside a wider set of so-called Edinburgh Reforms, which set out around 30 proposed changes to the UK financial services regime over the next few years. These are intended to build on the Financial Services and Markets Bill and boost growth in the financial services sector post-Brexit.
This article sets out, for the benefit of those involved with defined benefit pension schemes: how the regime will change, how this differs from the proposals released previously and how this could affect the schemes' de-risking options. We also consider whether the reforms will – as claimed – unlock "tens of billions of pounds" for investment in the UK.