EIOPA has just published its “Final Report … on the Advice to the European Commission in Response to the call for Advice on recovery plan[s], finance scheme[s], and supervisory powers in deteriorating financial conditions“.
The Report is intended to enable the Commission to develop delegated acts on the recovery plan and finance scheme required by articles 138(2) and 139(2) of the Solvency II Directive; and the exercise of supervisory powers when an insurer’s financial condition is deteriorating.
In EIOPA’s view, the delegated acts should include:
- Article 1: Content of the recovery plan and finance scheme;
- Article 2: Forecast balance sheet and estimates;
- Article 3: Overall reinsurance policy;
- Article 4: Non-compliance with both the Minimum Capital Requirement and the Solvency Capital Requirement at the same time;
- Article 5: Approval of the recovery plan and finance scheme; and
- Article 6: Supervisory measures in deteriorating financial conditions.
The Final Report includes EIOPA’s feedback on the responses received to its consultation on these issues; as well as EIOPA’s thoughts on the details that should be included in each of these articles.
EIOPA will submit its Final Report to the Commission before the end of March 2015, to give the Commission time to prepare and adopt the proposed delegated acts, if it accepts EIOPA’s conclusions.