EIOPA publishes product intervention advice: EIOPA has sent the Commission its technical advice on criteria and factors to be taken into account in applying product intervention powers under the Regulation on packaged retail and insurance-based investment products (PRIIPs). EIOPA says these should be non-exhaustive and high level and that it would not be practicable to set quantitative thresholds for intervention. It invites the Commission to consider the need to set the list as an exhaustive list for EIOPA to ensure EIOPA acts within its powers when making a decision. It sees many benefits to this approach, including that the list would be a benchmark against which to review EIOPA in the case of an application for judicial review of a decision it makes. The factors EIOPA notes, and with each of which it includes more detailed elements, to consider are the:

  • degree of complexity of the product or practice;
  • size of the potential problem or detriment;
  • types of investors involved;
  • degree of transparency;
  • particular features of the product or transaction, including any leverage;
  • degree of disparity between expected return or investor benefit and the risk of loss;
  • ease and cost for an investor of switching or selling a product;
  • pricing and associated costs;
  • degree of innovation;
  • selling practices associated with the product;
  • situation of the product issuer; 
  • risk to market functioning and integrity; and 
  • risk of disruption to systemically important institutions or any national financial system.

(Source: EIOPA Publishes Product Intervention Advice)

EIOPA consults on infrastructure investment risk categories: EIOPA is consulting on its advice to the Commission on identifying and calibrating infrastructure investment risk categories. It asks for comments by 9 August. (Source: EIOPA Consults on Infrastructure Investment Risk Categories)

EIOPA publishes Set 2 of Solvency 2 Technical Standards and Guidelines: EIOPA has submitted to the Commission its second set of draft Implementing Technical Standards (ITS) and Guidelines for Solvency 2. The ITS and Guidelines, which cover all three pillars of Solvency 2, attracted over 4,500 comments when EIOPA consulted on them. The draft ITS cover: 

  • list of regional governments and local authorities;
  • index for the equity dampener; 
  • currency shock for currencies pegged to the euro;
  • standard deviations for health insurance obligation subject to health risk equalisation system; 
  • supervisory transparency and accountability; 
  • capital add-ons; 
  • submission of information to the supervisory authorities;
  • procedures, formats and templates of the solvency and financial condition report; and 
  • exchange of information on a systematic basis with colleges. 

Additional reports include those on:

  • assessing external credit assessments;
  • recognition and valuation of assets and liabilities other than technical provisions;
  • implementation of the long-term guarantee measures;
  • extension of the recovery period in exceptional adverse situations; 
  • methods for determining the market shares for reporting;
  • reporting for financial stability purposes;
  • reporting and public disclosure; and 
  • supervision of branches of third-country insurance undertakings. 

Two further ITS, on mapping the ECAIs and on application of the equity transitional, will follow. (Source:EIOPA publishes Set 2 of Solvency 2 Technical Standards and Guidelines)

EIOPA consults on pan-European pension product: EIOPA is consulting on creating a standardised pan-European Personal Pension Product (PEPP). It wants to create a simple, transparent product, which can be sold across borders. It asks for comments on its thoughts by 5 October. (Source: EIOPA Consults on Pan-European Pension Product)