Featured Product

    EC Amends Regulation on Calculation of Regulatory Capital for Insurers

    September 14, 2017

    EC published Commission Delegated Regulation (EU) 2017/1542, which amends the Delegated Regulation (EU) 2015/35 on calculation of regulatory capital requirements for certain categories of assets held by insurance and reinsurance undertakings (infrastructure corporates). This regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    EC requested and received further technical advice from EIOPA regarding the criteria and calibration of a new asset class for infrastructure corporates. Based on EIOPA's technical advice to amend the existing treatment of qualifying infrastructure project investments, the existing provisions for infrastructure projects are being amended. EIOPA's technical advice as well as complementary evidence confirms that qualifying infrastructure corporate investments can be safer than non-infrastructure investments. Delegated Regulation (EU) 2015/35 should be amended to include the new risk calibrations for debt investment in qualifying infrastructure corporates to distinguish these investments from non-infrastructure investments. Following the introduction of the new qualifying infrastructure corporate asset class, other provisions of Delegated Regulation (EU) 2015/35 should be aligned accordingly, such as the formula for the solvency capital requirement and the due diligence requirements which are essential for prudent investment decisions by insurance companies. Therefore, the Delegated Regulation (EU) 2015/35 is amended as follows: 

    Points 55a and 55b in Article 1 have been replaced.

    Paragraph 1 in Article 164a have been replaced.

    Article 164b specifying qualifying infrastructure corporate investments has been inserted.

    Paragraphs 1, 4, and 6 of Article 168 have been replaced. Paragraph 3b of Article 168 has been inserted.

    Paragraph 4 of Article 169 has been added.

    Paragraph 4 of Article 170 has been added.

    The introductory sentence in Article 171 has been replaced

    Paragraphs 14, 15, and 16 in Article 180 have been added

    The second paragraph of point (b) in Article 181 has been replaced.

    Article 261a specifying risk management for qualifying infrastructure investments or qualifying infrastructure corporate investments has been replaced.

     

    Related Links

    CDR 2017/1542 (PDF)

    CDR 2015/35 (PDF)

    Effective Date: September 15, 2017

    Keywords: Europe, EU, Insurance, Solvency II, Regulatory Capital Requirements, CDR 2017/1542, CDR 2015/35, EC

    Featured Experts
    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425