PRA finalises Matching Adjustment Investment Accelerator framework

What does this mean?

Under the current regime, firms that want to add assets with features not already covered by their MA permission must first secure a variation of their MA permission - an approval process that can take up to 12 months.

The MAIA framework changes the sequencing. It allows eligible firms to include a limited allocation of self-assessed, MA eligible assets with features not currently covered by their existing MA permission and recognise the MA benefit immediately. These ‘MAIA’ assets are subject to exposure limits and a 24-month regularisation window through a full MA application.

Industry feedback was broadly supportive of the additional flexibility MAIA brings for annuity writers. Responses called for clarity on the regularisation period, identified the challenge of added year end reporting, and expressed concerns around allowable actions if the asset is not subsequently approved in the later MA application. In response, the PRA has made targeted changes and clarifications to the final policy. The most notable are below.

• The MAIA use report deadline has been extended to 18 weeks after a firm’s financial year-end (previously 14 weeks in CP7/25).
• Expectations for firms’ MAIA policies in SS7/18 have been clarified, moving to a risk-based proportionate assessment of asset eligibility in place of the more prescriptive draft wording.
• Contingency planning expectations have been clarified. Notably, firms should not rely on an immediate sale if an asset is later determined not to be MA-eligible and should set out how it will be managed outside the MA if removal is required. The PRA is not prescribing the content of these plans and does not intend to issue further guidance. It is therefore up to firms to adopt a proportionate, risk-based approach aligned to their wider risk framework.  
• For intragroup funded reinsurance, SS5/24 has been updated to permit, in certain scenarios, an assumption of recapture into the MA portfolio under a firm’s MAIA permission where the collateralised asset is the same as an asset already included in the firm’s MA portfolio under MAIA.

Alongside these refinements, the core features of MAIA remain unchanged with the key elements below:

Scope

• Only firms with an MA permission can apply for a MAIA permission. 
• MAIA applies to qualifying new assets, i.e. assets with features that are not currently covered by the firm’s existing MA permission.
• Assets previously rejected by the PRA in an MA application, or removed for failing MA eligibility conditions, remain ineligible for inclusion in MAIA.

Exposure limits

The PRA expects firms to set a MAIA exposure limit in line with supervisory expectations. This is generally the lower of:

• 5% of best estimate liabilities; or
• £2bn.

Compliance is assessed on nominal amounts and must capture both invested and committed amounts. Where amounts are denominated in a different currency, firms are expected to use the exchange rate at the time of initial investment to convert to sterling. Groups should coordinate usage across entities and treat the limit as a ceiling, not a target.

Regularisation

Firms have 24 months from inclusion to submit an MA application to bring MAIA assets under their MA permission. Early removals do not reset the clock; assets cannot be re-admitted via MAIA to restart the timeline. If limits are breached or regularisation stalls, the PRA may escalate supervisory action (including reductions to the MA) and, where issues persist beyond remedial periods, restrict or remove a firm’s MAIA permission.

Governance

While the MA framework is underpinned by eligibility requirements and robust risk management, use of MAIA requires a board-approved MAIA policy. This should be supported by updates to existing procedures and controls.

At a minimum, firms must:

• set the intended use of the permission and the firm’s risk appetite for ineligibility risk;
• run proportionate, risk-based asset eligibility assessments against all MA conditions; and
• maintain a contingency plan for each MAIA asset that does not assume an immediate sale and explain how the asset will be managed outside the MA portfolio, including the expected capital and liquidity impacts.

Following  submission of a sufficient quality of evidence, the PRA expects to determine the outcome of an initial application to use the MAIA promptly.

What do firms need to do?

Beyond the key action of establishing a board-approved MAIA policy to utilise the MAIA, firms need to review and refresh internal policies so MAIA decisions are consistent and executable. 

The first practical move is then to identify and triage the asset pipeline. Build a funnel of candidates to prioritise features that are credible MA contenders. More complex or unclear cases can then be routed through a standard MA variation. 

Where appropriate, firms may wish to consider use of MAIA to begin investing in assets with highly predictable cashflows.

In parallel, embed resilience. Prepare contingency plans that do not assume an immediate sale, setting out:

• how each asset would be operated outside the MA if removal is required;
• the expected capital and liquidity impacts;
• any hedging or collateral implications; and 
• who will make which decisions and when.

Finally, make the data work for you. Review current MI, reporting and control capabilities to identify gaps against MAIA requirements then implement proportionate enhancements. Dashboards should track invested and committed amounts, utilisation of MAIA capacity across entities, ageing against the 24-month clock, any breaches and remediation activities. This visibility supports effective oversight, keeping boards on the front foot and converting MAIA flexibility into deployable capital.

Next steps

The final rules and policy material took effect on 27 October 2025 (except for the changes to the MALIR template, which will be implemented from 31 December 2026). Firms can now apply for MAIA permission.