Featured Product

    EBA Reviews Standards on Indemnity Insurance Under Mortgage Directive

    February 28, 2020

    EBA published a report on the review of the regulatory technical standards specifying the minimum monetary amount of the professional indemnity insurance or comparable guarantee for mortgage credit intermediaries, under the Mortgage Credit Directive, or MCD, in EU. The assessment found no evidence to suggest that the minimum monetary amounts for professional indemnity insurance need to be amended.

    In reaching this conclusion it is necessary to stress that the mandate given to EBA by Article 29(2) of the Mortgage Credit Directive refers only to the threshold amounts. The mandate does not extend to EBA assessing, for example, the extent to which the use of the minimum payout amounts prescribed in the regulatory technical standards are potentially impeded by specific clauses in professional indemnity insurance contracts; the nature of the comparable guarantees that may be used in the market; or what should be understood as a "comparable guarantee" at all. EBA, therefore, did not analyze those elements or conduct a thorough assessment of the content of insurance contracts.

    EBA assessed the responses to a survey sent by national competent authorities to the ten largest credit intermediaries in their respective jurisdiction, intelligence gathered from national authorities, and desk-based research. The regulatory technical standards on professional indemnity insurance, or PII, were published in the Official Journal of the European Union in October 2014 as Delegated Regulation 1125/2014, set the minimum monetary amount of the professional indemnity insurance or comparable guarantee for mortgage credit intermediaries by specifying an amount for each individual claim (EUR 460,000) and an aggregate amount per calendar year for all claims (EUR 750,000). As part of its mandate, EBA will review the regulatory standards on professional indemnity insurance every two years.

     

    Related Links

    Keywords: Europe, EU, Banking, Professional Indemnity Insurance, Mortgage Credit Directive, Regulatory Technical Standards, Regulation 1125/2014, Credit Risk, MCD, EBA

    Related Articles
    News

    ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic

    ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.

    September 21, 2020 WebPage Regulatory News
    News

    ESAs Launch Survey on Templates for Product Disclosures Under SFDR

    ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).

    September 21, 2020 WebPage Regulatory News
    News

    ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks

    ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.

    September 21, 2020 WebPage Regulatory News
    News

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    APRA Consults on Alignment of Daily Liquidity Report for Banks

    APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.

    September 17, 2020 WebPage Regulatory News
    News

    FED Releases Scenarios for Second Round of Stress Tests on Banks

    FED released hypothetical scenarios for a second round of stress tests for banks.

    September 17, 2020 WebPage Regulatory News
    News

    FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis

    FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.

    September 17, 2020 WebPage Regulatory News
    News

    FED Revises Information Collection Under Market Risk Capital Rule

    FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).

    September 17, 2020 WebPage Regulatory News
    News

    EBA Seeks Input on ESG Disclosure Practices of Banks

    EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.

    September 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5809