EC Amends Regulation Supplementing Solvency II Directive
EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance. These new rules under Solvency II will make it easier for insurers to provide financing to companies, including small and medium enterprises (SMEs). Regulation (EU) 2019/981 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Points (50), (59) to (61), (66) and (74) of Article 1 of Regulation (EU) 2019/981 shall apply from January 01, 2020.
The current level of capital requirements makes it costly for insurers to finance SMEs, particularly in the case of long-term equity investments and private debt. Insurers providing finance via such instruments, which should help mobilize private-sector investment, is a key objective of the Capital Markets Union. Regulation (EU) 2019/981 introduces simplifications for the calculation of capital requirements by insurance companies as well as alignments between rules for banking and the insurance sector. This will reduce the regulatory burden for insurers without jeopardizing the safety of the sector. Further revisions of technical nature in the delegated regulation ensure that the rules remain fit for purpose. A more fundamental review of Solvency II is due by the end of 2020. Preparatory work for that review is ongoing. In line with the objectives of the Capital Markets Union, further analysis on remaining obstacles to investments in the real economy will be undertaken.
Related Links
Effective Date: July 08, 2019
Keywords: Europe, EU, Insurance, Securities, Solvency II, Capital Requirements, Capital Markets Union, Regulation 2019/981, Regulation 2015/35, SCR, EC
Previous Article
EIOPA Publishes Annual Report for 2018Related Articles
|
News
US Agencies Consult on Capital Treatment of Land Development LoansUS Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.
July 12, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for July 2019Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.
July 12, 2019
WebPage
Regulatory News
|
|
News
ESMA Updates Manual for European Single Electronic Format in EUESMA updated the reporting manual for European Single Electronic Format (ESEF).
July 12, 2019
WebPage
Regulatory News
|
|
News
FED Updates Supplemental Instructions for Reporting Form FR Y-9CFED updated the supplemental instructions for FR Y-9C reporting.
July 12, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Report on Monitoring Implementation of LCR in EUEBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.
July 12, 2019
WebPage
Regulatory News
|
|
News
APRA Applies Additional Capital Requirements to Three Australian BanksAPRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.
July 11, 2019
WebPage
Regulatory News
|
|
News
IMF Report on 2019 Article IV Consultation on Euro Area PoliciesIMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.
July 11, 2019
WebPage
Regulatory News
|
|
News
FSB to Survey Practices on Cyber Incident Response and RecoveryFSB launched a survey on the industry practices on cyber incident response and recovery.
July 11, 2019
WebPage
Regulatory News
|
|
News
ECB Appoints New Members of Supervisory BoardThe Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.
July 11, 2019
WebPage
Regulatory News
|
|
News
OSFI Consults on Applying Proportionality to Pillar 1 Rules in CanadaOSFI published a discussion paper seeks input on possible tailoring of the capital and liquidity requirements for small and medium-size deposit-taking institutions.
July 11, 2019
WebPage
Regulatory News
|
