On 19 January 2011, the European Commission (EC) published the Omnibus II Directive proposal. The proposed Directive makes changes to the Solvency II Directive and the Prospectus Directive.
In relation to Solvency II, the proposed Directive:
- sets out the scope for the European Insurance and Occupational Pensions Authority (EIOPA) to exercise its powers, including its powers to develop draft technical standards
- enables the EC to implement transitional measures in certain areas
- extends the implementation date to 31 December 2012.
The proposed Directive is broadly in line with what was anticipated. In relation to the transitional measures, the explanation accompanying the proposed Directive states that these should provide a smooth transition to the new regime, avoid market disruption and encourage moves towards compliance with the new regime as soon as possible.
The proposed Directive must now be agreed by the European Council and Parliament.