Featured Product

    EIOPA Consults on Supervision of Remuneration Principles in Insurance

    July 25, 2019

    EIOPA launched a consultation on its opinion on the supervision of remuneration principles in the insurance and reinsurance sectors. The draft opinion, addressed to national supervisory authorities, provides guidance on how to challenge the application of these principles and focuses on a reduced scope of staff identified as potential higher profile risk-takers to promote a proportionate approach. The opinion also identifies benchmarks that should trigger the supervisory dialog and should not be seen as hard targets for the practical implementation of the remuneration principles. Feedback is requested by September 30, 2019.

    The remuneration principles set out in Article 275 of the Commission Delegated Regulation (EU) 2015/35 leave considerable discretion to the undertakings and supervisory authorities. Therefore, divergent practices have emerged across EU. EIOPA intends to build a common supervisory culture through the convergence of national supervisory practices. The opinion aims to enhance convergence in the supervision of remuneration policies of insurance and reinsurance undertakings at the European level, without prejudice to the application of the relevant provisions of the Solvency II Directive and the Delegated Regulation. 

    EIOPA intends not to add requirements or to create administrative burden. Risk-based supervision of the remuneration policy means that the national supervisory authorities should have a two-dimensional approach when assessing the risk. The first dimension being the undertakings' overall risk profile and the second dimension being the design of the concrete remuneration policy that might be identified as being more risky than others. National supervisory authorities may adopt a proportionate and more flexible approach in the supervision of the remuneration principles when undertakings are categorized as "low risk." EIOPA will consider the feedback received and expects to publish a final report on the consultation, along with the final opinion.

     

    Related Links

    Comment Due Date: September 30, 2019

    Keywords: Europe, EU, Insurance, Reinsurance, Solvency II, Opinion, Supervision, Remuneration Principles, Proportionality, Supervisory Convergence, Operational Risk, EIOPA

    Featured Experts
    Related Articles
    News

    HKMA Sets Out Regulatory Treatment for Personal Loan Guarantee Scheme

    HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.

    April 20, 2021 WebPage Regulatory News
    News

    ECB Completes Targeted Review of Internal Models of Banks

    ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.

    April 19, 2021 WebPage Regulatory News
    News

    PRA on Regulatory Treatment of Loans Under Mortgage Guarantee Scheme

    PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.

    April 19, 2021 WebPage Regulatory News
    News

    FCA Consults on Rules and Reporting Forms for Investment Firms Regime

    FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).

    April 19, 2021 WebPage Regulatory News
    News

    HMT and BoE Decide to Explore Central Bank Digital Currency in UK

    HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.

    April 19, 2021 WebPage Regulatory News
    News

    EIOPA Sets Out Expectations on Use of Climate Risk Scenarios in ORSA

    EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).

    April 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Standards for MREL Reporting by Competent Authorities

    EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).

    April 16, 2021 WebPage Regulatory News
    News

    BCBS to Advance Work on Suptech, Climate Risk, and Basel Monitoring

    BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.

    April 16, 2021 WebPage Regulatory News
    News

    Bundesbank Updates AnaCredit Reporting Requirements

    Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.

    April 16, 2021 WebPage Regulatory News
    News

    PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK

    PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.

    April 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6874