In a recent publication, we highlighted that with the approval of the Omnibus II Directive (O2), the Solvency II framework Directive (2009/138/EC: S2) is finally final and noted that further details concerning many subjects still need to be provided in delegated and implementing acts and in guidelines. The European Insurance and Occupational Pensions Authority (EIOPA) has recently concluded its public consultation on the first set of Implementing Technical Standards (ITS) and is currently in the process of consulting the first set of guidelines (S2 GL). Insurers should participate in this consultation to be able to influence their future regulatory landscape.
Guidelines are non-binding instruments, addressed to National Competent Authorities (NCAs) or financial Institutions. They aim to ensure the common, uniform and consistent application of European Union law and to establish consistent, efficient and effective supervisory practices. Though the GL are non-binding, they provide important guidance for NCAs and non-compliance needs to be reported and explained to EIOPA.
This first set of S2 GL that is currently being consulted addresses:
The Pillar 1 S2 GL provide details on the following topics:
The S2 GL on the Use of Internal Models provide guidance on the following:
The Pillar 2 S2 GL provide guidance on the following topics:
Supervisory Review Process
The Supervisory Review Process (SRP) S2 GL focus on:
The S2 GL on the methodology for Equivalence assessment are designed to assist the group supervisor with its task of verifying whether a third country regime is at least equivalent under article 227 (group solvency) and/or article 260 (group supervision) of S2. This verification can be initiated on request or at the group supervisor’s initiative if the European Commission has not adopted delegated acts determining that the supervisory regime of the third country is (provisionally/temporarily) equivalent to the S2 regime.
The consultation period for the first set of S2 ITS ended on 30 June 2014. The European Commission is expected to publish the final version of these ITS later this year.
EIOPA has announced it will consult on a second set of S2 ITS that address the quantitative basis (Pillar 1), qualitative requirements (Pillar 2), reporting and disclosure (Pillar 3) and supervisory transparency as well as a second set of S2 GL that provides further guidance on qualitative requirements, reporting and disclosure. Both consultations are planned to start in December of this year.
The EIOPA S2 timeline as well as the consultation documents for the first set of S2 GL can be found on the EIOPA website. The consultation period for the first set of S2 GL ends 29 August 2014. Insurers should not miss this opportunity to voice any suggestions they might have with regard to any of the topics addressed.
1 May 2020
17 April 2020
16 April 2020
16 March 2020
17 December 2019
17 December 2019
12 September 2019
20 June 2019
20 June 2019
16 May 2019
De Brauw Blackstone Westbroek
Claude Debussylaan 80
1082 MD Amsterdam
P.O. Box 75084
1070 AB Amsterdam