EIOPA Letter To European Commission On Amending Solvency II Delegated Regulation

Author:Arthur Cox
Profession:Arthur Cox
 
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On 10 December, EIOPA responded to the European Commission's consultation on a Commission Delegated Regulation amending the Solvency II Delegated Regulation (EU 2015/35).

The proposed Regulation reflects EIOPA's advices, including its suggested modifications to the design of the interest rate risk sub-module. The letter refers to EIOPA's continued investigation on the treatment of illiquid liabilities and related investments. As the Commission proposes to reduce the capital charge for a portfolio of long-term liquidity investments backing long-term liabilities by 22%, EIOPA calls on the Commission to post-pone making such an amendment to the Solvency II Delegated Regulation until it has taken account of the outcome of EIOPA's analysis.

EIOPA raises practical concerns regarding the Commission's proposal to modify the general provisions on the relevant risk-free interest rate term structure. In particular, the proposed...

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