EC published the Implementing Regulation (EU) 2018/1844 regarding the templates for submission of information to the supervisory authorities, in accordance with the Solvency II Directive (2009/138/EC). Regulation 2018/1844 amends and corrects the implementing technical standards in Implementing Regulation (EU) 2015/2450. The changes in Regulation 2018/1844 impact certain Solvency II templates, as presented in Annex I to the regulation. Regulation 2018/1844 shall enter into force the twentieth day following that of its publication in the Official Journal of the European Union.
Regulation 2015/2450 laid down the reporting templates that insurance and reinsurance undertakings, participating insurance and reinsurance undertakings, insurance holding companies, and mixed financial holding companies need to use for reporting information to the supervisory authorities. The Delegated Regulation (EU) 2017/1542, which amends rules on the calculation of regulatory capital requirements for certain categories of assets held by insurance and reinsurance undertakings, introduced the new qualifying infrastructure corporate asset class with a dedicated capital requirement. To ensure that supervisory authorities receive the necessary information on the infrastructure corporates investments made by insurance and reinsurance undertakings, with a level of detail and granularity comparable to that existing for the other asset classes within the calculation of the market risk module, the relevant reporting templates, as laid down in Regulation 2015/2450, are being adapted to take into account those amendments.
Provisions on the correct use of sign of expressions and consistent exchange rates are crucial to improve consistency and quality of the information reported with regard to the historical data denominated in a currency other than the reporting currency. Therefore, Articles 2 and 3 have been amended to improve the quality of the information reported. The templates on variation analysis aim to explain, with economic metrics, why and how the situation of the undertaking has evolved during the year. As stakeholders have identified a number of areas for improvement and further clarification, certain amendments to the instructions of templates S.29.01 to S.29.04 are necessary. Therefore, Regulation 2015/2450 is being amended as follows:
- Point (d) has been added in Article 2.
- Paragraph 4a has been inserted in Article 3.
- Annex I, II, III, and IV has been amended in accordance with Annex I, II, III, and IV to Regulation (EU) 2018/1844, respectively.
Drafting errors in the instructions of the templates, which may lead to inconsistent and misleading information and consequently affect the quality of the supervisory review process, should be corrected. Therefore, certain corrections, mainly addressing missing reporting items or information in the general comments and missing cells in the instructions, were made. Annexes I, II, and III to Regulation 2015/2450 have been corrected in accordance with Annexes V, VI, and VII to Regulation 2018/1844, respectively.
Effective Date: December 16, 2018
Keywords: Europe, EU, Insurance, Reinsurance, Reporting, Solvency II, Templates, Regulation 2018/1844, Regulation 2015/2450, EC
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.