The European Council has decided not to object to the European Commission’s Solvency II third-country equivalence decisions. The Commission’s decisions will become law, if the European Parliament takes the same approach, which seems almost inevitable.
In early June 2015, the Commission decided that:
- Switzerland should be regarded as Solvency II equivalent for group capital calculation purposes, group supervisory purposes, and reinsurance purposes; and
- Australia, Bermuda, Brazil, Canada, Mexico and the USA should be regarded as Solvency II equivalent, for group capital purposes (only); on a 10 year renewable basis (only) and, in the case of Bermuda, only in respect of commercial insurers, not captives.
The Commission’s decisions were in the form of Delegated Acts, so they will be published in the Official Journal and become law unless the Council and/or the Parliament objects. The Council has chosen not to object. The Parliament is likely to take the same approach when it considers the Commission’s decisions too. The first set of equivalence decisions are therefore almost final. More to follow …