IAIS Launches Survey on Treatment of Certain Investments in ICS
As part of its work on the Insurance Capital Standard (ICS) over the 2020-2024 Monitoring Period, IAIS is exploring whether there should be a differentiated capital treatment of certain eligible infrastructure (both equity and debt) as well as strategic equity investments within the ICS. To this end, IAIS launched a stock-take questionnaire (survey) to seek public input regarding quantitative and qualitative material and data sources that could be used to support this work. The survey also provides an opportunity for stakeholders to share with the IAIS their experience with respect to such investments. IAIS is requesting responses by December 07, 2020.
This questionnaire will be complemented by another one, which would be addressed to IAIS members and focused on existing treatment for infrastructure and strategic equity investments under the jurisdictional prudential frameworks. Annex 1 to the questionnaire contains a strawman proposal that provides a temporary reference point in terms of potential relevant definitions and criteria applicable to investments in infrastructure and strategic equity. The inclusion of the strawman proposal is aimed at enabling comparison with the existing frameworks and fostering input by respondents to this questionnaire; this does not imply or determine whether a differentiated treatment should be developed for the ICS. It is largely based on the technical specifications for the supplementary data collection on investment segmentation that was run from 2017 to 2019 in the context of ICS Field Testing and in 2020 in the context of ICS confidential reporting. The view of IAIS on potential relevant definitions and criteria for investments in infrastructure and strategic equity will be formed based on the responses received and further work planned over the next years. Therefore, the current strawman proposal should not be considered as a final view of IAIS regarding definitions and criteria, should a differentiated treatment be developed in the ICS.
Keywords: International, Insurance, ICS, Questionnaire, ICS Version 2, Monitoring Period, Infrastructure Investments, IAIS
Previous Article
FSB Extends Implementation Timeline for Framework on SFTsRelated Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
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.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
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.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
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.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
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.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
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.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
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.
CBIRC Revises Measures on Corporate Governance Supervision
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.