EC published the Implementing Regulation 2019/2103 that amends and corrects the Implementing Regulation 2015/2450, which lays down implementing technical standards with regard to the templates for the submission of information to the supervisory authorities in accordance with the Solvency II Directive (2009/138/EC). Regulation 2019/2103 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
The relevant reporting templates and related instructions laid down in Implementing Regulation (EU) 2015/2450 have been adapted to take into account certain amendments:
- Delegated Regulation (EU) 2018/1221 amended Delegated Regulation (EU) 2015/35 to adapt the prudential framework applicable to insurance and reinsurance undertakings to the introduction of simple, transparent, and standardized securitizations.
- Delegated Regulation (EU) 2019/981 amended Delegated Regulation (EU) 2015/35 to introduce a number of simplifications in the calculation of the Solvency Capital Requirement.
- Delegated Regulation (EU) 2019/981 introduced, among others, new requirements for the information to be provided to the supervisory authorities in the regular supervisory report and the solvency and financial condition report on the recognition of the capacity of deferred taxes to absorb present losses. To ensure a proper supervision by supervisory authorities, that information should be supplemented by quantitative, structured, and comparable information in the reporting templates.
Therefore, Annexes I, II, and III to the Implementing Regulation (EU) 2015/2450 are being amended in accordance with Annexes I, II, and III to the Implementing Regulation (EU) 2019/2103. Furthermore, instructions set out in the template "S.25.02—Solvency Capital Requirement—for groups using the standard formula and partial internal model" contain an error that may lead to the provision of inconsistent or misleading information. Therefore, Annex III to the Implementing Regulation (EU) 2015/2450 has been corrected in accordance with Annex IV to Regulation 2019/2103.
The amendments provided for in the Delegated Regulation (EU) 2019/981 require the submission of information concerning the calculation of the loss-absorbing capacity of deferred taxes. These amendments are to apply from January 01, 2020. The amendments to the templates set out in Annexes I and II to Implementing Regulation (EU) 2015/2450 that are made to reflect those information requirements should, therefore, not be binding before January 01, 2020. However, it is important that information concerning the calculation of the loss-absorbing capacity of deferred taxes can be submitted, on a voluntary basis, from the entry into force of Regulation 2019/2103.
Effective Date: December 30, 2019
Keywords: Europe, EU, Securities, Insurance, Reinsurance, Solvency II, Reporting, SCR, Capital Requirements, STS Securitization, Loss-Absorbing Capacity, EIOPA
Previous ArticleIAIS Consults on Guidance on Liquidity Risk Management for Insurers
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.