On 14 September, EIOPA published Set 2 of its Solvency II Guidelines (the Guidelines). The Guidelines aim to ensure consistent application of both Solvency II and the Commission Delegated Regulation (EU) 2015/35. National Competent Authorities (NCAs) are required to confirm whether they comply or intend to comply with the Guidelines within two months. There are 9 Guidelines in total, which shall apply from 1 January 2016:
- Reporting for financial stability – provides guidance on the approach to collection of data from insurance/ reinsurance groups by NCAs for financial stability purposes and guidance on content and frequency of supervisory reporting;
- Extension of the recovery period in exceptional adverse situations – aimed at ensuring that a consistent approach is developed by NCAs in order to determine when an extension to the recovery period should be granted and the duration of any such extension, withdrawal or revocation of an extension etc.;
- Exchange of information within colleges – addressed to the NCAs within the colleges of EEA Groups to promote the exchange of information between groups of supervisors to enhance consistent supervision of financial institutions;
- Implementation of the long-term guarantee measures – promotes uniformity in relation to the NCAs’ implementation of the volatility adjustment, the matching adjustment, the transitional measure on the risk-free interest rates and the transitional measure on technical provisions;
- Methods for determining the market shares for reporting – assists in the definition and calculation of the market share for relevant insurers/reinsurers;
- Reporting and public disclosure – guidance on information to be provided to the NCAs in the regular supervisory report, quantitative supervisory reports and publicly disclosed in the solvency and financial condition report;
- Recognition and valuation of assets and liabilities other than technical provisions –guidance to promote convergence and to assist undertakings to recognise and value assets and liabilities other than technical provisions;
- System of governance – guidance on the sound and prudent management of the business of undertakings on issues including remuneration policy, the fit and proper requirements and risk management; and
- Own risk solvency assessment – guidance is provided on what is to be achieved by the ORSA rather than how it is to be performed.
A link to the Solvency II Guidelines is here.