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The prudential sourcebook, for many firms, will lower the amount of regulatory capital that they must hold.

This is due to the mathematical reserves removing the requirement to allow for future bonuses as well as allow for lapses in the policies (ie policyholders cancel their policies).

Many firms will find that they can release some capital previously tied by the the Interim Prudential Sourcebook (the predecessor to the Integrated Prudential Sourcebook).

Go back to the ..
PS0416 Sourcebook Information
section page.

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