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

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936