FSA Forms

Question 1

Write out what you’d expect to see in form 19.

Answer 1

Assets
Reg. assets + excess assets of reg + PVFP from non-par in WP fund = Realistic assets

Liabs
WPBR+FPRL (cos of fin options/gtees/smoothing/enhancements)+Current realistic liabs = Realistic liabs

RCM
Realistic excess capital (ie free surplus after RCM)
Working capital (=realistic excess capital + rcm)

Question 2

Write out what you’d expect to see in form 18

Answer 2

Assets
admissable assets + math res of non-par business + lticr part of non-par business = reg. assets

Liabs
reg. liabs = math res + current liabs

lticr
rcr
total liabs = reg liabs + lticr + rcr

reg. excess capital = reg. assets - total liabs
real.excess capital = from form 19
PV sht from distn of surplus (use to increase real.excess cap)
wpicc = max(0, reg. excess cap - (real. excess cap + pv sht))

So if reg free surplus = 100
and real free surplus = 60
Then if no SHT wpicc = 40 to bring down reg. surplus to 60
However if SHT=20
Then real free surplus + SHT = 80
This brings down WPICC to 20