NBB released a communication that sets out expectations regarding the dividend distribution policy of credit institutions that are under the direct supervision of NBB, in light of the measures adopted to manage the impact of COVID-19. NBB has also put in place a bank guarantee scheme for individual and companies affected by the COVID-19 pandemic. Additionally, NBB published a circular that defines the methods for collecting data used to monitor the impact of COVID-19 pandemic on Belgian insurance companies and groups. NBB also deferred the date of collection of certain quantitative and qualitative reports expected from insurance and reinsurance companies, under the Solvency II Directive, as well as certain reports expected from the authorized auditors; the submission of these reports involves the use of OneGate and eCorporate platforms.
To obtain a quick and precise picture of the impact of COVID-19 pandemic on the insurance sector, NBB needs additional information. The circular on data collection lists the methods of reporting on the impact of COVID-19:
- Weekly quantitative reporting of the company's key financial data (Annex 1)
- Weekly qualitative reporting of changes in key financial data and the company's liquidity position (Annex 2)
- One-time reporting (to be submitted only once) of the company's intentions regarding possible distributions to shareholders and policyholders (appendix 3) as well as the latest versions of all relevant internal policy documents
EIOPA published, on March 20, 2020, the recommendations on flexibility to be granted concerning the maturity of certain quantitative reports due to the COVID-19 crisis. These measures mainly concern the postponement of transmission of the annual Solvency II reporting, certain specifications concerning the quarterly Solvency II reporting, and the Solvency and Financial Condition Report (SFCR). Considering the EIOPA recommendations, this is how NBB is implementing these aspects:
- OneGate Communication Concerning Postponement of Certain Reports—This communication specifies the expectations of NBB regarding annual and quarterly Solvency II reporting. In view of the containment measures taken in the context of the COVID-19 crisis, NBB has decided to grant a deadline for the transmission of certain quantitative prudential reports, specific to Belgium, which are to be transmitted via the OneGate platform by insurance and reinsurance companies. NBB has granted additional eight weeks for reporting of interest rate risk and residential mortgage loan reports, among others.
- eCorporate Communication Concerning Postponement of Certain Qualitative Reports—This communication specifies the expectations of NBB regarding the SFCR. NBB has decided to grant an additional deadline concerning the transmission of certain qualitative prudential reports, specific to Belgium, which are to be transmitted by insurance and reinsurance companies via the eCorporate platform. NBB has also decided to grant an additional deadline extension for transmission of reports expected from approved commissioners. The extended deadlines have been outlined in Annexes 1 and 2 to the communication.
Related Links (in English and French)
- Press Release
- Circular on COVID-19 Reporting
- OneGate Communication
- eCorporate Communication
- Communication on Dividend Distribution Policy
- Guarantee Scheme
Keywords: Europe, Belgium, Insurance, Reinsurance, COVID-19, Reporting, OneGate, eCorporate Platform, Solvency II, SFCR, Interest Rate Risk, NBB
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.