IAIS published the 2019 Quantitative Field Testing Package, including technical specifications, field testing questionnaire, and IAIS field testing template and yield curves. Additionally, IAIS published comments to the 2018 Insurance Capital Standard (ICS) Version 2.0 consultation document. This version of ICS is scheduled to be completed in late 2019 and post that the monitoring period is expected to start on January 01, 2020.
The technical specifications include instructions for the April 2019 Quantitative Data Collection Exercise of the Field Testing Project. The technical specifications must be read in conjunction with the associated 2019 field testing questionnaire, template, and yield curve documentation to provide an accurate and up-to-date understanding of the field testing exercise. The field testing questionnaire focuses on supplementary information in relation to quantitative data provided in the 2019 field testing template of the April 2019 Quantitative Data Collection Exercise of the Field Testing Project and is due on July 31, 2019. The Field Testing Analysis Team will analyze the summary results and IAIS will discuss the summary results from August 2019 to November 2019. Adoption of ICS Version 2.0 for the monitoring period is expected to be in November 2019.
The field testing exercise plays an important role in the IAIS’ process of developing the risk-based global ICS. The ICS will be one component of ComFrame, a comprehensive framework addressing qualitative as well as quantitative requirements for the Internationally Active Insurance Groups (IAIGs). This framework may evolve and be refined over time. This exercise also fulfills the purpose of confidential reporting of the Basic Capital Requirements (BCR) and Higher Loss Absorbency (HLA) for global systemically important insurers (G-SIIs). To facilitate ongoing monitoring of the BCR and HLA, certain calculations are requested from all volunteer groups.
Keywords: International, Insurance, ComFrame, ICS, Field Testing, Quantitative Data Collection Exercise, G-SII, IAIS
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).