Insurance Quarterly Legal And Regulatory Update - 1 January 2015 To 31 March 2015

Author:Dillon Eustace
Profession:Dillon Eustace

Solvency II

(i) ECON Letter to European Commission on Solvency II Regulation and Response

On 9 January 2015, the European Parliament published a letter (dated 19 December 2014) from the Chair of its Committee on Economic and Monetary Affairs ("ECON") to the European Commissioner for Financial Stability, Financial Services and Capital Markets Union, on the proposed Delegated Regulation supplementing the Solvency II Directive (2009/138/EC) (the "Solvency II Delegated Regulation").

The letter states that following an analysis by the European Parliament's Solvency II negotiating team, the European Parliament has drawn up a list of issues relating to the European Commission's proposals. These issues which are set out in the Annex to the letter relate to:

Corrections to the text of the proposal; The empowerments given to the Commission under Solvency II; Future work relating to Solvency II to be conducted by the Commission and the European Insurance and Occupational Pensions Authority ("EIOPA"). The European Parliament requested the Commission to take immediate action to ensure that EIOPA has the necessary resources to fulfil the powers and duties stemming from the Solvency II Delegated Regulation. Following this, on 30 January 2015, the European Commission published a letter from the European Commissioner for Financial Stability, Financial Services and Capital Markets Union responding to the ECON letter on the Solvency II Delegated Regulation. In the letter, it states that:

The fact the European Parliament and the Council of the EU accepted the Solvency II Delegated Regulation as adopted by the European Commission, without requesting an extension of the scrutiny period, provides legal certainty on the new prudential regime for insurers. The European Commission has started to work on a review of the calibration of capital requirements on infrastructure investments in the broader context of the capital markets union. A report will be adopted on the issue of the resources of EIOPA. This report will be an important tool in relation to helping the budgeting authority determines EIOPA's future resources. The European Commission is still waiting for input from EIOPA to complete its assessment of third country regimes. The equivalence decisions will be put forward as soon as possible, with major jurisdictions being prioritised. On 11 March 2015, EIOPA published final reports (all dated 30 January 2015) on third country equivalence for Bermuda...

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