EC published the Implementing Regulation 2019/2103 that amends and corrects the Implementing Regulation 2015/2450, which lays down implementing technical standards with regard to the templates for the submission of information to the supervisory authorities in accordance with the Solvency II Directive (2009/138/EC). Regulation 2019/2103 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
The relevant reporting templates and related instructions laid down in Implementing Regulation (EU) 2015/2450 have been adapted to take into account certain amendments:
- Delegated Regulation (EU) 2018/1221 amended Delegated Regulation (EU) 2015/35 to adapt the prudential framework applicable to insurance and reinsurance undertakings to the introduction of simple, transparent, and standardized securitizations.
- Delegated Regulation (EU) 2019/981 amended Delegated Regulation (EU) 2015/35 to introduce a number of simplifications in the calculation of the Solvency Capital Requirement.
- Delegated Regulation (EU) 2019/981 introduced, among others, new requirements for the information to be provided to the supervisory authorities in the regular supervisory report and the solvency and financial condition report on the recognition of the capacity of deferred taxes to absorb present losses. To ensure a proper supervision by supervisory authorities, that information should be supplemented by quantitative, structured, and comparable information in the reporting templates.
Therefore, Annexes I, II, and III to the Implementing Regulation (EU) 2015/2450 are being amended in accordance with Annexes I, II, and III to the Implementing Regulation (EU) 2019/2103. Furthermore, instructions set out in the template "S.25.02—Solvency Capital Requirement—for groups using the standard formula and partial internal model" contain an error that may lead to the provision of inconsistent or misleading information. Therefore, Annex III to the Implementing Regulation (EU) 2015/2450 has been corrected in accordance with Annex IV to Regulation 2019/2103.
The amendments provided for in the Delegated Regulation (EU) 2019/981 require the submission of information concerning the calculation of the loss-absorbing capacity of deferred taxes. These amendments are to apply from January 01, 2020. The amendments to the templates set out in Annexes I and II to Implementing Regulation (EU) 2015/2450 that are made to reflect those information requirements should, therefore, not be binding before January 01, 2020. However, it is important that information concerning the calculation of the loss-absorbing capacity of deferred taxes can be submitted, on a voluntary basis, from the entry into force of Regulation 2019/2103.
Effective Date: December 30, 2019
Keywords: Europe, EU, Securities, Insurance, Reinsurance, Solvency II, Reporting, SCR, Capital Requirements, STS Securitization, Loss-Absorbing Capacity, EIOPA
Previous ArticleIAIS Consults on Guidance on Liquidity Risk Management for Insurers
The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.