Featured Product

    EU Adopts Rules on Supervisory Framework for Financial Institutions

    December 27, 2019

    EU published Regulations 2019/2175 and 2019/2176 and Directive 2019/2177 in the Official Journal of European Union. The finalized regulations reform tasks, powers, governance, and funding of ESAs and ESRB, to adapt the authorities to the changed context in which they operate. The finalized directive (2019/2177) amends Solvency II Directive (2009/138/EC), Markets in Financial Instruments Directive or MiFID (2014/65/EU), and Anti-Money Laundering Directive (EU 2015/849). The published regulations and the directive shall enter into force on the third day following that of their publication in the Official Journal of the European Union. For Regulation 2019/2175, Articles 1, 2, 3, and 6 shall apply from January 01, 2020 while Articles 4 and 5 shall apply from January 01, 2022.

    The finalized directive introduces certain amendments to the Solvency II Directive, which provides that, in accordance with the risk-oriented approach to the Solvency Capital Requirement, it is possible in specific circumstances for insurance and reinsurance undertakings and groups to use internal models for the calculation of that requirement, instead of using the standard formula. Solvency II Directive also provides for a country component in the volatility adjustment. To ensure that this country component mitigates exaggerations of bond spreads in the relevant country effectively, an appropriate threshold for the risk-corrected country spread should be set for the activation of the country component. Therefore, Solvency II Directive has been amended by Directive (EU) 2019/2177 accordingly. Additionally, Section 2A on notification and collaboration platforms has also been inserted in Title I, Chapter VIII of the Solvency II Directive.

    Additionally, Regulation 2019/2175 amends regulations establishing ESAs (Regulation 1093/2010, 1094/2010, and 1095/2010), Markets in Financial Instruments Regulation or MiFIR (EU No 600/2014), Benchmarks Regulation (EU 2016/1011), and Regulation (EU) 2015/847 on information accompanying transfers of funds. Regulation 2019/2176 amends Regulation (EU) No 1092/2010 on EU macro-prudential oversight of the financial system and establishing a ESRB. 


    Related Links

    Effective Date: December 30, 2019

    Keywords: Europe, EU, Banking, Insurance, Securities, ESFS, Solvency II, SCR, Internal Model, Benchmarks Regulation, ESAs, ESRB, European Council

    Featured Experts
    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606