PRA scraps audit requirements following AFM lobbying

Adam Saville
clock • 2 min read

All AFM members meet exemption threshold

The Prudential Regulatory Authority has announced that small insurers will no longer be required to have their annual Solvency and Financial Condition Report (SFCR) externally audited. The decision comes following a lobbying campaign from the Association of Financial Mutuals (AFM), which provided evidence that PS25/18 (‘Solvency 2: external audit of the public disclosure requirement') was a very costly exercise and duplicated verification work elsewhere; it added pressure and in many cases more than doubled an organisation's audit costs, without providing any clear benefit to readers of ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Mutuals call for UK government support to close the protection gap

Mutuals call for UK government support to close the protection gap

Government actions highlighted to help mutual sector

Jaskeet Briah
clock 10 July 2026 • 2 min read
Vulnerability key in FCA Consumer Duty review

Vulnerability key in FCA Consumer Duty review

Vulnerable customer an area of improvement for firms

Sophia Panayi
clock 10 July 2026 • 2 min read
NHS waiting list up to 2026 high

NHS waiting list up to 2026 high

List stands at 7.28m

Cameron Roberts
clock 09 July 2026 • 2 min read