Featured Product

    EIOPA Consults on Reporting and Disclosures Under Solvency II Review

    July 12, 2019

    EIOPA launched a consultation package on supervisory reporting and public disclosure in the context of its work linked with the 2020 Solvency II review. This consultation package deals with supervisory reporting and public disclosure issues that the supervisors and industry have raised over the last three years and proposes amendments where adequate. The consultation period ends on October 18, 2019. A second wave of public consultation will occur later in the year and will complement the current consultation.

    EIOPA received, on February 11, 2019, the Call for Advice of EC on the review of Solvency II Directive. EIOPA will respond to the Call for Advice in the form of a Solvency II Opinion, which will include a holistic impact assessment. This Solvency II Opinion will be published for consultation in the fourth quarter of 2019. This consultation paper is a draft response to the Call for Advice item 3.15 on reporting and disclosure. The advice in this paper will be amended with the input of this consultation process and will be included in the Solvency II Opinion to be submitted to EC. EIOPA will consult on the review of the supervisory reporting and public disclosure in two waves. The first wave covers the areas included in this public consultation. These areas are covered by specific consultation papers, with each covering a separate impact assessment. The following areas are covered in this consultation paper:

    • General issues on supervisory reporting and public disclosure (EIOPA-BoS-019-300)
    • Individual Quantitative Reporting Templates (EIOPA-BoS-019- 305) and Annexes (EIOPA-BoS-019-330 to 357)
    • Solvency and Financial Condition Report and Narrative Supervisory Reporting (EIOPA-BoS-019-309)
    • Financial Stability Reporting (EIOPA-BoS-019-306)

    The EIOPA proposals involve the following key issues:

    • Keep deadlines for quarterly reporting but extend the deadline for annual reporting by two weeks
    • Increased proportionality by dividing templates into two categories, core and non-core with risk-based thresholds different for annual or quarterly submissions. The risk-based threshold shall reflect the nature, scale, and complexity of the risk exposure of the risk area covered by each template
    • Deletion and simplification of a number of Quantitative Reporting Templates both for quarterly and annually reporting
    • Harmonization of templates on cross-border information—one template enlarged, which replaces three other templates and templates on Solvency Capital Requirement templates, including now internal models reporting
    • Creation of new templates to incorporate new information such as on cyber risks and product-by-product information for non-life business
    • Revision of templates such as the look-through approach for collective investment funds and the variation analysis
    • Improved structure of the Solvency and Financial Condition Report, with dedicated sections for policyholders and the professional public
    • For pure captives' undertakings, simplifications of annual reporting and partial exemption from the SFCR

    Later in the year, along with other areas of the Solvency II 2020 review, EIOPA will consult on additional areas of supervisory reporting and public disclosure and these areas involve Group Quantitative Reporting Templates, regular supervisory reporting, technical aspects of the reporting and disclosure processes, data quality aspects, and reporting and disclosure issues linked to other areas of the Solvency II 2020 review, particularly the Long-Term Guarantee templates. During the consultation, EIOPA will also organize a voluntary field testing of the new templates on cyber risk, variation analysis, product-by-product information for non-life, cross-border business, and internal model reporting. The result of both consultations will be included in the EIOPA Opinion to be submitted to EC by June 2020. After June 2020, some of the proposals will need to be considered by EC and eventually reflected in a Directive and/or Delegated Regulation amendments, such as the proposals on the public disclosure or narrative reporting. However, other proposals, such as deletion of some templates and new information to be requested could be reflected in the implementing technical standards without the need for any legislative amendment.

     

    Related Links

    Comment Due Date: October 18, 2019

    Keywords: Europe, EU, Insurance, Solvency II, Reporting, Disclosures, SFCR, Quantitative Reporting Templates, Financial Stability Reporting, Cyber Risk, Proportionality, EIOPA

    Featured Experts
    Related Articles
    News

    EC to Defer Application of SFDR Standards Till July 2022

    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.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    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.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    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.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    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.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    ESMA Responds to Proposal Related to Sustainability Standards Board

    The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7283