On 11 April, the Prudential Regulation Authority issued a Consultation Paper in which it sets out its proposal to consider applications from internal model firms that include a Dynamic Volatility Adjustment. This proposal is relevant to UK Solvency II firms and to the Society of Lloyd’s and its managing agents, and most relevant to firms with, or seeking, Volatility Adjustment approval and which use, or may develop in the future, a full or partial internal model to determine the Solvency Capital Requirement.