Activities of Antolín SÁNCHEZ PRESEDO related to 2007/0143(COD)
Plenary speeches (1)
Credit Rating Agencies - Reporting and documentation requirements in the case of merger and divisions - Insurance and reinsurance (Solvency II) (recast) (debate)
Amendments (139)
Amendment 80 #
Proposal for a directive
Recital 19 a (new)
Recital 19 a (new)
(19a) References in this Directive to ‘actuarial’ should be widely interpreted to comprise the range of technical aspects that form part of the essential substance of the insurance business and should not, therefore, necessary be linked or limited to a concrete profession, to the extent that the increasing complexity of certain aspects of the insurance business may lead to a wider range of professionals participating to develop appropriately the actuarial function.
Amendment 81 #
Proposal for a directive
Recital 21
Recital 21
(21) In order to guarantee transparency insurance and reinsurance undertakings should disclose publicly at least annually essential information on their solvency and financial condition. Undertakings should be allowed to disclose publicly additional information on a voluntary basis. References in this Directive to public disclosure of information should mean making the information generally available in a systematised, understandable and manageable manner, giving customers and other users access as easily and speedily as possible and at a low and reasonable cost. Use of electronic facilities would meet this essential principle to the extent that the information publicly disclosed is adequately systematised, its electronic location is centralised, and it is widely accessible.
Amendment 95 #
Proposal for a directive
Recital 38
Recital 38
(38) Provision should be made to lay down a standard formula for the calculation of the Solvency Capital Requirement, to enable all insurance and reinsurance undertakings to assess their economic capital. For the structure of the standard formula, a modular approach should be adopted, which means that the individual exposure to each risk category should be assessed in a first step and then aggregated in a second step. Where the use of undertaking-specific parameters allows for the true underwriting risk profile of the undertaking to be better reflected, this should be allowed, provided such parameters are derived using a standardised methodology. In particular, the use of undertaking-specific parameters may be applicable in cases of national specific features, such as mutual entities covering professional liabilities, where such long- term liabilities are subject to national regulations.
Amendment 99 #
Proposal for a directive
Recital 43 a (new)
Recital 43 a (new)
(43a) The Minimum Capital Requirement identifies the amount of basic own funds below which policyholders and beneficiaries are exposed to an unacceptable level of risk if insurance and reinsurance undertakings were allowed to continue their operations. The amount of the Minimum Capital Requirement ensures that an insurer cannot continue its activity if it is exposed to ruin in 1 out of 20 cases, with a probability of ruin of no more than 5 %, to meet their obligations to policyholders and beneficiaries over the forthcoming 12 months.
Amendment 149 #
Proposal for a directive
Article 27 – title
Article 27 – title
Main objective of supervision under this Directive
Amendment 158 #
Proposal for a directive
Article 27 − paragraph 1 a (new)
Article 27 − paragraph 1 a (new)
1a. Member States shall also ensure that the supervisory authorities in the framework of the economic and monetary union are able to prevent systemic risks, protect the financial stability and achieve the objectives of the Community.
Amendment 159 #
Proposal for a directive
Article 28 – paragraph 1
Article 28 – paragraph 1
1. Supervision shall be based on a prospective and risk-oriented approach cyclically and temporarily adjusted. It shall include the verification on a continuous basis of the proper operation of the insurance or reinsurance business and of the compliance with supervisory provisions by insurance and reinsurance undertakings.
Amendment 163 #
Proposal for a directive
Article 29 – paragraph 2 – subparagraph 1
Article 29 – paragraph 2 – subparagraph 1
Financial supervision pursuant to paragraph 1 shall include verification, with respect to the entire business of the insurance and reinsurance undertaking, of its state of solvency, of the establishment of technical provisions, of its assents and of the eligible own funds, in accordance with the rules laid down or practices followed in the Member State under provisions adopted at Community level.
Amendment 192 #
Proposal for a directive
Article 44 – paragraph 6
Article 44 – paragraph 6
6. The insurance and reinsurance undertakings shall inform the supervisory authorities of the results of each own risk and solvency assessment as part of the information reported under Article 35. Where appropriate, that information shall include the actions the insurance or reinsurance undertaking has adopted to solve any non-compliance according paragraph 1(b) or any significant deviation according paragraph 1(c), and the results obtained from those actions.
Amendment 201 #
Proposal for a directive
Article 49 – point 1
Article 49 – point 1
(1) the elements of the systems referred to in Articles 41, 43, 45 and and 43 to 46, and in particular the areas to be covered by the asset – liability management and investment policy, as referred to in Article 43(2), of insurance and reinsurance undertakings;
Amendment 209 #
Proposal for a directive
Article 52 – paragraph 3 – subparagraph 1 a (new)
Article 52 – paragraph 3 – subparagraph 1 a (new)
Where the insurance or reinsurance undertaking maintains an electronic location, the information referred to in this Section shall be publicly disclosed in a common format, updated regularly and accessible at a single electronic location.
Amendment 228 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 – introductory part
Article 74 – paragraph 1 – subparagraph 1 – introductory part
1. Member States shall ensure that, unless otherwise statedfor solvency purposes, insurance and reinsurance undertakings value assets and liabilities as follows:
Amendment 230 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 – point a
Article 74 – paragraph 1 – subparagraph 1 – point a
(a) assets shall be valued at the amount for which they could be exchanged between knowledgeable willing parties in an arm's length transaction; if such amount is objectively observable in a deep and liquid market or may be obtained applying generally accepted methods which provide values meeting the market consistency principle referred to in Article 75(3);
Amendment 231 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 – point b
Article 74 – paragraph 1 – subparagraph 1 – point b
(b) liabilities shall be valued at the amount for which they could be transferred, or settlsettled with policyholders or beneficiaries, or transferred, between knowledgeable willing parties in an arm's length transaction.
Amendment 232 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 a (new)
Article 74 – paragraph 1 – subparagraph 1 a (new)
Assets that cannot be valued according the criteria, referred to in point (a) of the first subparagraph shall be valued with prudent and objective criteria, appropriate to produce an adequate solvency assessment.
Amendment 233 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 b (new)
Article 74 – paragraph 1 – subparagraph 1 b (new)
All assets shall be appropriately taking into account in the calculation of Solvency Capital Requirement.
Amendment 234 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 1 c (new)
Article 74 – paragraph 1 – subparagraph 1 c (new)
Unless there is evidence that an insurance undertaking will not settle its liabilities, they shall not be valued at below the market consistent value of the funds that the insurance or reinsurance undertaking is required to meet.
Amendment 237 #
Proposal for a directive
Article 74 – paragraph 2 – subparagraph 1
Article 74 – paragraph 2 – subparagraph 1
2. The Commission shall adopt, implementing measures to set out: (a) the methods, and assumptions and simplifications to be used in the valuation of assets and liabilities as laid down in ; (b) the requirements to ensure that a valuation reliably and objectively reflects the value of transfer of an asset; (c) the rules of valuation of assets without a reliable and objective value of transfer, to deliver a prudent and objective value for those assets; (d) the rules applicable to value the liabilities, other than technical provisions, of insurance and reinsurance undertakings; (e) any other measure to guarantee the highest level of harmonisation of principles and practices stated in this subparagraph 1. .
Amendment 240 #
Proposal for a directive
Article 75 – paragraph 2
Article 75 – paragraph 2
2. The calculation of technical provisions shall be based on their current exit value current value of all future cash flows necessary to the settlement or transfer of all remaining obligations of existing insurance contracts.
Amendment 261 #
Proposal for a directive
Article 87 – paragraph 2
Article 87 – paragraph 2
Amendment 262 #
Proposal for a directive
Article 89 – paragraph 1 – subparagraph 1 a (new)
Article 89 – paragraph 1 – subparagraph 1 a (new)
The amount ascribed to each ancillary own fund item shall reflect the loss- absorbency of the item in situations covered by Article 101(3), and shall be based upon prudent and realistic assumptions.
Amendment 263 #
Proposal for a directive
Article 89 – paragraph 2 – introductory part
Article 89 – paragraph 2 – introductory part
2. For each ancillary own fund item, the supervisory authorities shall base their approval on an assessment in situations covered by Article 101(3) of the following:
Amendment 264 #
Proposal for a directive
Article 89 – paragraph 3
Article 89 – paragraph 3
Amendment 288 #
Proposal for a directive
Article 93 - paragraph 1 - introductory part
Article 93 - paragraph 1 - introductory part
1. Own fund items shall be classified into three tiers on the basis of. The classification of those items shall depend upon whether they are basic own fund or ancillary own fund items and the extent to which they possess the following characteristics:
Amendment 289 #
Proposal for a directive
Article 93 - paragraph 1 - point a (new)
Article 93 - paragraph 1 - point a (new)
(a) the item is available, or can be called up on demand, to absorb losses fully on a going-concern basis, as well as in the case of winding-up (permanent availability);
Amendment 290 #
Proposal for a directive
Article 93 - paragraph 1 - point 1
Article 93 - paragraph 1 - point 1
(1b) in the case of winding-up, the total amount of the item is available to absorb losses and the repayment of the item is refused to its holder until all other obligations, including insurance and reinsurance obligations towards policyholders and beneficiaries of insurance and reinsurance contracts, have been met (subordination);
Amendment 291 #
Proposal for a directive
Article 93 - paragraph 1 - points 2 to 5
Article 93 - paragraph 1 - points 2 to 5
Amendment 292 #
Proposal for a directive
Article 93 - paragraph 1 a (new)
Article 93 - paragraph 1 a (new)
Amendment 293 #
Proposal for a directive
Article 94
Article 94
1. Basic own fund items shall be classified in Tier 1 where they substantially possess the characteristics set out in points (1), (2a) and (3b) of Article 93, and, to a substantial degree, those set out in points (4) and (5) thereof(1), taking into consideration the features set out in Article 93(1a). 2. Basic own fund items sthall be classified in Tier 2 where they possesst possess substantially only the characteristics set out in points (1) and (2b) of Article 93, and to a substantial degree those set out in points (4) and (5) thereof. (1), shall be classified in Tier 2 or Tier 3 taking into consideration the features set out in Article 93(1a). 3. Ancillary own fund items shall be classified in Tier 2 where they substantially possess the characteristics set out in points (1), (2a) and (3b) of Article 93, and, to a substantial degree those set out in (4) and (5) thereof(1), taking into consideration the features set out in Article 93(1a). 34. Any basic and ancillary own fund items, which do not fall under paragraphs 1 and 2 shall be classified in Tier 3 that only possess substantially the characteristic set out in point (b) of Article 93(1), shall be classified in Tier 3 taking into consideration the features set out in Article 93(1a).
Amendment 294 #
Proposal for a directive
Article 95 – paragraph 2
Article 95 – paragraph 2
For that purpose, insurance and reinsurance undertakings shall refer to the list of own funds referred to in point (c) of Article 97(1), where applicable.
Amendment 295 #
Proposal for a directive
Article 95 – paragraph 3
Article 95 – paragraph 3
Amendment 320 #
Proposal for a directive
Article 98 – paragraph 1 – point a
Article 98 – paragraph 1 – point a
(a) in order to ensure that the proportion of Tier 1 items in the eligible own funds is higher than one third of the total eligible own funds, the eligible amount of Tier 2 together with the eligible amount of Tier 3 shall be limited to twice the total amount of Tier 1 items;
Amendment 348 #
Proposal for a directive
Article 101 – paragraph 3 – subparagraph 2
Article 101 – paragraph 3 – subparagraph 2
It shall correspond to the Value-at-Risk of the basic own funds of an insurance or reinsurance undertaking subject to a confidence level of 99.5,5 % over a one-year period. The calibration of that confidence level shall be based on consistent premise, taking into account the economic cycle in order to prevent pro-cyclical capital requirements.
Amendment 397 #
Proposal for a directive
Article 127 – paragraph -1 (new)
Article 127 – paragraph -1 (new)
-1. In order to introduce a standardised safety net objectively assessed, and to prevent the risk of model contagion between the two capital requirements, the Minimum Capital Requirement shall be calculated independently from the Solvency Capital Requirement.
Amendment 410 #
Proposal for a directive
Article 127 – paragraph 1 – point c
Article 127 – paragraph 1 – point c
(c) the level of the Minimum Capital Requirement shall be calibrated to the Value-at-Risk of the basic own funds of an insurance or reinsurance undertaking subject to an average confidence level in the range of 80% to 90of 95 % over a one-year period;
Amendment 418 #
Proposal for a directive
Article 127 – paragraph 1 – point d
Article 127 – paragraph 1 – point d
Amendment 431 #
Proposal for a directive
Article 130 – paragraph 2 – subparagraph 1
Article 130 – paragraph 2 – subparagraph 1
2. With respect to the whole portfolio of assets, insurance and reinsurance undertakings shall only invest in assets and instruments whose risks the undertaking concerned can properly monitor, manage and control, and take into account, as appropriate, in the assessment of its capital requirements and overall solvency needs.
Amendment 439 #
Proposal for a directive
Article 132 – paragraph 1 – subparagraph 1
Article 132 – paragraph 1 – subparagraph 1
1. With respect to insurance risks situated in the Community, Member States shall ensure thatrequire insurance undertakings to localise their assets held to cover the technical provisions related to those risks are localised within the Communityonly in those jurisdictions that give full guarantees to transfer the assets to the Community under all circumstances, in particular at the first request of the supervisory authority of the Community having authorised the insurance undertaking. Member States shall not require insurance undertakings to localise those assets in any particular Member States.
Amendment 452 #
Proposal for a directive
Article 180 a (new)
Article 180 a (new)
Amendment 468 #
Proposal for a directive
Article 181 – paragraph 1 – subparagraph 2 a (new)
Article 181 – paragraph 1 – subparagraph 2 a (new)
The insurance undertaking shall also inform the policyholder of the existence of declaration of group support, the percentage of group support used to cover the difference between the Minimum Capital Requirement and the Solvency Capital Requirement of that insurance undertaking and the responsibilities and powers of the subsidiary’s and group supervisors.
Amendment 472 #
Proposal for a directive
Article 182 – paragraph 1 – subparagraph 1
Article 182 – paragraph 1 – subparagraph 1
1.Where non-life insurance is offered under the right of establishment or the freedom to provide services, the policyholder shall, before any commitment is entered into, be informed of the Member State in which the head office or, where appropriate, the branch with which the contract is to be concluded is situated. Furthermore, the insurance undertaking shall inform the policyholder of the supervisory authority responsible of supervising its solvency and the legislation applicable in case of winding up.
Amendment 475 #
Proposal for a directive
Article 183 – paragraph 2 – point c a (new)
Article 183 – paragraph 2 – point c a (new)
(ca) the supervisory authority responsible of the supervision of the solvency of the insurance undertaking and the law applicable in case of winding up;
Amendment 477 #
Proposal for a directive
Article 183 – paragraph 2 – point c b (new)
Article 183 – paragraph 2 – point c b (new)
(cb) the existence of declaration of group support, the percentage of group support used to cover the difference between the Minimum Capital Requirement and the Solvency Capital Requirement of that insurance undertaking and the responsibilities and powers of the subsidiary’s and group supervisors.
Amendment 500 #
Proposal for a directive
Article 210 – paragraph 2 – subparagraph 1
Article 210 – paragraph 2 – subparagraph 1
2. For the purposes of this Title, the supervisory authorities shall also consider as a parent undertaking any undertaking which, in the opinion of the supervisory authorities, effectively exercises a dominant influence over another undertaking, within the meaning of Directive 2002/87/EC.
Amendment 501 #
Proposal for a directive
Article 210 – paragraph 2 – subparagraph 2
Article 210 – paragraph 2 – subparagraph 2
They shall also consider as a subsidiary undertaking any undertaking over which, in the opinion of the supervisory authorities, a parent undertaking effectively exercises a dominant influence, within the meaning of Directive 2002/87/EC.
Amendment 502 #
Proposal for a directive
Article 210 – paragraph 2 – subparagraph 3
Article 210 – paragraph 2 – subparagraph 3
They shall also consider as participation the holding, directly or indirectly, of voting rights or capital in an undertaking over which, in the opinion of the supervisory authorities, a significant influence is effectively exercised, within the meaning of Directive 2002/87/EC.
Amendment 507 #
Proposal for a directive
Article 214 – paragraph 6
Article 214 – paragraph 6
Amendment 508 #
Proposal for a directive
Article 217 – paragraph 1 – subparagraph 1
Article 217 – paragraph 1 – subparagraph 1
1. The group supervisor shall ensure that the calculations referred to in Article 216(2) and (3) and Article 250(4) (own risk assessment) are carried out at least once a year, either by the insurance or reinsurance undertakings or by the insurance holding company.
Amendment 509 #
Proposal for a directive
Article 219 – paragraph 1 – subparagraph 4
Article 219 – paragraph 1 – subparagraph 4
Where in the opinion of the supervisory authorities, the responsibility of the parent undertaking owning a share of the capital is strictly limited to that share of the capital, the group supervisor may, after consultation with the other supervisory authority concerned, nevertheless allow for the solvency deficit of the subsidiary undertaking to be taken into account on a proportional basis.
Amendment 510 #
Proposal for a directive
Article 220 – paragraph 2 – subparagraph 1 – introductory part
Article 220 – paragraph 2 – subparagraph 1 – introductory part
2. Without prejudice to paragraph 1, the following may only be included in the calculation in so far as they are eligible for covering the Solvency Capital Requirement of the related undertaking concerned and to the extent that it contributes to the group Solvency Capital Requirement:
Amendment 512 #
Proposal for a directive
Article 220 – paragraph 3
Article 220 – paragraph 3
3. If the supervisory authorities consider that certain own funds eligible for the Solvency Capital Requirement of a related insurance or reinsurance undertaking other than those referred to in paragraph 2 cannot effectively be made available to cover the Solvency Capital Requirement of the participating insurance or reinsurance undertaking for which the group solvency is calculated, those own funds may be included in the calculation only in so far as they are eligible for covering the Solvency Capital Requirement of the related undertaking and to the extent it contributes to the group Solvency Capital Requirement.
Amendment 518 #
Proposal for a directive
Article 225 – paragraph 2 – subparagraph 2
Article 225 – paragraph 2 – subparagraph 2
The group supervisor shall consult the other supervisory authorities concerned, and the Committee of European Insurance and Occupational Pensions Supervisors, before taking a decision on equivalencesubmitting its proposal on equivalence to the Commission.
Amendment 520 #
Proposal for a directive
Article 225 – paragraph 3 – subparagraph 1
Article 225 – paragraph 3 – subparagraph 1
3. The Commission shall adopt, after consultation of the European Insurance and Occupational Pensions Committee and in accordance with the procedure referred to in Article 304(2), a decision as to whether the solvency regime in a third country is equivalent to that laid down in Title I, Chapter VI, having in mind the principle of mutual recognition.
Amendment 521 #
Proposal for a directive
Article 225 – paragraph 3 – subparagraph 2
Article 225 – paragraph 3 – subparagraph 2
These decisionsose decisions, designed to amend non- essential elements of this Directive, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 304(3). They shall be regularly reviewed to take into account any changes to the solvency regime laid down in Title I, Chapter VI, and to the solvency regime in the third country.
Amendment 523 #
Proposal for a directive
Article 225 – paragraph 4 – subparagraph 1
Article 225 – paragraph 4 – subparagraph 1
Amendment 524 #
Proposal for a directive
Article 228 – paragraph 2 – subparagraph 2 – point a a (new)
Article 228 – paragraph 2 – subparagraph 2 – point a a (new)
(aa) the Minimum Capital Requirement, as referred to in Article 127, of the related insurance and reinsurance undertakings, when the minority interests have been included in the calculation of the own funds of the group in accordance with Article 220(3);
Amendment 525 #
Proposal for a directive
Article 228 – paragraph 2 – subparagraph 2 – point b
Article 228 – paragraph 2 – subparagraph 2 – point b
(b) the proportional share of the Minimum Capital Requirement of the related insurance or reinsurance undertakings, where the minority interests have not been included in the calculation of the own funds of the group in accordance with Article 220(3).
Amendment 526 #
Proposal for a directive
Article 228 – paragraph 2 – subparagraph 3
Article 228 – paragraph 2 – subparagraph 3
That minimum shall be covered by eligible basic own funds as determined in Article 98(5).
Amendment 527 #
Proposal for a directive
Article 229 – paragraph 1 – subparagraph 2
Article 229 – paragraph 1 – subparagraph 2
An application as referred to in the first subparagraph shall be submitted only to the group supervisor and the supervisory authorities concerned.
Amendment 528 #
Proposal for a directive
Article 229 – paragraph 1 – subparagraph 2 a (new)
Article 229 – paragraph 1 – subparagraph 2 a (new)
An application referred to in the first subparagraph shall contain at least the following: - information necessary to assess the bases, implementation and impact of the group internal model. Such information shall enable a comprehensive assessment of the internal model in the group as a whole, and an assessment in each subsidiary where the application of the group internal model is requested, and shall provide an integration of both levels of analysis, -, - a proper understanding of the main causes of the difference between the group Solvency Capital Requirement and the sum of the Solvency Capital Requirement of each insurance and reinsurance undertaking in the group.
Amendment 531 #
Proposal for a directive
Article 232 – paragraph 1
Article 232 – paragraph 1
The Commission mayshall adopt implementing measures specifying the technical principles and methods to ensure uniform application within the Community. Those measures shall specify the criteria required in order to: (a) follow when deciding not to include an undertaking in the group supervision in accordance with Article 212(2)(c); (b) identify the casets outf urgency referred to in Articles 218 to 227 and2(2); (c) allow the application of the last paragraph of Articles 228 to 231 to ensure uniform application within the Community. 19(1); (d) determine whether or not certain own funds are available to cover the Solvency Capital Requirement at group level, as set out in Article 220(3); and (e) determine the extent of the solvency regime assessment referred to in Article 225.
Amendment 532 #
Proposal for a directive
Title III – Chapter II – Section 1 – Subsection 6 – title
Title III – Chapter II – Section 1 – Subsection 6 – title
Amendment 533 #
Proposal for a directive
Title III – Chapter II – Section 1 – Subsection 6 – title
Title III – Chapter II – Section 1 – Subsection 6 – title
Subsection 6 - Group supportCapital in the group
Amendment 534 #
Proposal for a directive
Article 234
Article 234
Amendment 536 #
Proposal for a directive
Article 234 – point c
Article 234 – point c
(c) the parent undertaking has declared, in writing and in a legally binding document accepted by the group supervisor and the other supervisory authority concerned, in accordance with Article 237, that it guarantees that own funds eligible under Article 98(5) will be transferred where necessarytier 1 basic eligible own funds will be unconditionally transferred where required, in the form of appropriate assets at the request of either the group supervisor or the other supervisory authority concerned and up to the limit resulting from the application of Article 237;.
Amendment 542 #
Proposal for a directive
Article 234 – point d
Article 234 – point d
(d) an application for permission to be subject to Articles 236 to 241 has been introduced jointly by the parent undertaking and the subsidiary concerned and a favourable decision has been made on such application in accordance with the procedure set out in Article 235.
Amendment 545 #
Proposal for a directive
Article 234 – point d a (new)
Article 234 – point d a (new)
(da) the application contains adequate evidence demonstrating that group support requested for the subsidiary undertaking concerned does not exceed the share of the group diversification benefits attributable to this undertaking as determined by methods relying on verifiable economically consistent criteria.
Amendment 551 #
Proposal for a directive
Article 235
Article 235
Amendment 553 #
Proposal for a directive
Article 235 – paragraph 1 – subparagraph 2
Article 235 – paragraph 1 – subparagraph 2
An application as referred to in the first subparagraph shall be submitted only to the group supervisor and the other supervisory authorities concerned. The group supervisor shall inform the otherand each supervisory authoritiesy concerned without delayshall coordinate and exchange the information received in accordance with Articles 252, 253 and 254.
Amendment 557 #
Proposal for a directive
Article 235 – paragraph 2 – subparagraph 1
Article 235 – paragraph 2 – subparagraph 1
2. The group supervisor and each supervisory authoritiesy concerned shall do everything within their power to reach a joint decision on the application within six months from the date of receipt ofwhen the complete application was received by the group supervisory authorities concerned.
Amendment 561 #
Proposal for a directive
Article 235 – paragraph 2 – subparagraph 2
Article 235 – paragraph 2 – subparagraph 2
Amendment 563 #
Proposal for a directive
Article 235 – paragraph 2 – subparagraph 3
Article 235 – paragraph 2 – subparagraph 3
The joint decision shall be set out in a document containing the fully reasoned decision which shall be transmitted to the applicant by the group supervisor. The joint decision referred to above shall be recognised as determinative and applied by the supervisory authorities in the Member States concernedeach undertaking by its respective supervisory authority.
Amendment 571 #
Proposal for a directive
Article 235 – paragraph 3
Article 235 – paragraph 3
3. In the absence of a joint decision betweenDuring the first two months of the supervisory authorities conciod refernred within six monthsto in paragraph 2, the group supervisor shall make its own decision on the application. The decision shall be set out in a document containing the fully reasoned decision and shall take into account the views and reservations of the other supervisory authorities concerned expressed within a six months period. The decision shall be provided to the applicant and the other supervisory authorities concerned by the group supervisor. That decision shall be recognised as determinative and applied by the supervisory authorities concernedor any supervisory authority may make a request for the coordination arrangements provided for in Article 252 as regards the application of group support.
Amendment 578 #
Proposal for a directive
Article 235 – paragraph 3 a (new)
Article 235 – paragraph 3 a (new)
3a. During the last two months of the period referred to in paragraph 2, the group supervisor shall, at the request of any of the other supervisory authorities concerned, consult the CEIOPS. The group supervisor may consult the Committee on its own initiative. When the Committee is consulted, the period referred to in paragraph 2 shall be extended by two months.
Amendment 582 #
Proposal for a directive
Article 235 – paragraph 3 b (new)
Article 235 – paragraph 3 b (new)
3b. In the absence of a joint decision one month after the advice of CEIOPS, each supervisor may provide its decision, when it is in conformity with the advice of CEIOPS, to the insurance or reinsurance undertakings under their supervision. The decisions shall be set out in a document containing full reasons.
Amendment 583 #
Proposal for a directive
Article 235 – paragraph 3 c (new)
Article 235 – paragraph 3 c (new)
3c. Where there is a joint decision, each supervisor concerned shall provide the decision to their respective insurance or reinsurance undertakings.
Amendment 584 #
Proposal for a directive
Article 236
Article 236
Amendment 585 #
Proposal for a directive
Article 236 – paragraph 1
Article 236 – paragraph 1
Amendment 590 #
Proposal for a directive
Article 236 – paragraph 2
Article 236 – paragraph 2
2. Where the Solvency Capital Requirement of the subsidiary is calculated on the basis of an internal model approved at group level in accordance with Article 229 and the supervisory authority having authorised the subsidiary considers that its risk profile deviates significantly from this internal model, and as long as that undertaking does not properly address the concerns of the supervisory authority, that authority may, in the cases referred to in Article 37, propose toafter informing the group supervisor to, impose a capital add-on to the Solvency Capital Requirement of that subsidiary resulting from the application of such model, or, in exceptional circumstances where such capital add-on would not be appropriate, to require that undertaking to calculate its Solvency Capital Requirement on the basis of the standard formula. The supervisory authority that authorised the subsidiary shall communicate the grounds for such proposaldecisions to both the subsidiary and the group supervisor.
Amendment 595 #
Proposal for a directive
Article 236 – paragraph 3 – subparagraph 1
Article 236 – paragraph 3 – subparagraph 1
3. Where the Solvency Capital Requirement of the subsidiary is calculated on the basis of the standard formula and the supervisory authority having authorised the subsidiary considers that its risk profile deviates significantly from the assumptions underlying the standard formula, and as long as that undertaking does not properly address the concerns of the supervisory authority, that authority may, in the cases referred to in Article 37, propose toafter informing the group supervisor to, impose a capital add- on to the Solvency Capital Requirement of that subsidiary.
Amendment 598 #
Proposal for a directive
Article 236 – paragraph 3 – subparagraph 2
Article 236 – paragraph 3 – subparagraph 2
The supervisory authority that authorised the subsidiary shall communicate the grounds for such proposala decision to both the subsidiary and the group supervisor.
Amendment 603 #
Proposal for a directive
Article 236 – paragraph 4
Article 236 – paragraph 4
Amendment 622 #
Proposal for a directive
Article 237
Article 237
Amendment 623 #
Proposal for a directive
Article 237 – paragraph 1 – subparagraph 1
Article 237 – paragraph 1 – subparagraph 1
1. By way of derogation from Article 98(4), any difference betweenTo benefit groups from the diversification effects of their business, but at the same time to avoid endangering the Ssolvency Capital Requirement and the minimum capital requirement of the subsidiaryof the group as a whole and of each subsidiary, and with due consideration for the necessity of giving an appropriate level of protection to all consumers of the group, diversification benefits attributable to a subsidiary determined in accordance with Article 234(da) shall be covered by eithera combination of own funds eligible under Article 98(4) orand group support, or any combination thereof.
Amendment 630 #
Proposal for a directive
Article 237 – paragraph 1 – subparagraph 2
Article 237 – paragraph 1 – subparagraph 2
The group support shall, for the purposes of the classification of own funds into tiers in accordance with Articles 93 to 96, be treated as ancillary own funds belonging to Tier 3 and shall respect the limits set out in Article 98.
Amendment 633 #
Proposal for a directive
Article 237 – paragraph 1 a (new)
Article 237 – paragraph 1 a (new)
1a. In order to preserve the stability of insurance markets and to provide a level playing field among insurance and other financial competitors, paragraph 1 shall be introduced under the following conditions: (a) the own funds of the subsidiary insurance or reinsurance undertaking eligible under Article 98(4) shall cover at least the sum of Minimum Capital Requirement and 75% of the difference between the Solvency Capital Requirement and the Minimum Capital Requirement. (b) the group has sufficient eligible own funds to cover its consolidated group Solvency Capital Requirement, and at least 75 % of the total amounts of group support declared with Tier 1 eligible own funds; (c) the calculation of the group Solvency Capital Requirement shall consider separately both positive and negative effects of belonging to a group, explicitly including risks such as contagion, reputation and strategy.
Amendment 635 #
Proposal for a directive
Article 237 – paragraph 2
Article 237 – paragraph 2
2. The group support shall take the form of a joint declaration to the group supervisor and the supervisory authority concerned, expressed in a legally binding document and constituting a commitment to transfer own funds eligible under Article 98(5). to the group supervisor and the supervisory authority of the subsidiary, and constituting a commitment to transfer Tier 1 basic eligible own funds in the form of assets set out in Article 234(c). The risks inherent in group support shall be considered in the calculation of the capital requirements of the subsidiary. Group support shall reduce the basic own funds of the participating undertaking when calculating its solvency position at individual level.
Amendment 647 #
Proposal for a directive
Article 237 – paragraph 3 – introductory part
Article 237 – paragraph 3 – introductory part
3. Before accepting the declaration referred to in paragraph 2, the group supervisor and the supervisory authority having authorised the subsidiary shall verify the following:
Amendment 654 #
Proposal for a directive
Article 237 – paragraph 3 – point b
Article 237 – paragraph 3 – point b
(b) that there is no current or foreseeable material practical or legal impediment to the prompt transfer of the eligible own funds referred to in paragraph 2 within one month after its requirement in the form of assets set out in Article 234(c). The parent undertaking shall, in particular, maintain appropriate measures to ensure its legal commitments to transfer funds due to group support;
Amendment 658 #
Proposal for a directive
Article 237 – paragraph 3 – point c
Article 237 – paragraph 3 – point c
(c) that the document containing the declaration of group support meets all requirements existing under the laws of the parent undertakingboth the group supervisor and the supervisory authority of the subsidiary to be recognised as a legal commitment, and that any recourse before a legal or administrative body shall not have suspensive effect.
Amendment 662 #
Proposal for a directive
Article 237 – paragraph 3 – point c a (new)
Article 237 – paragraph 3 – point c a (new)
(ca) that the legally binding document shall provide a guarantee of payment, on first demand, which can be amended only with prior approval of the supervisory authorities concerned. The guarantee provided shall be direct, explicit, irrevocable and unconditional, and the guarantor shall not amend any right that may impede or hinder the effectiveness of the guarantee.
Amendment 663 #
Proposal for a directive
Article 237 – paragraph 3 – point c a (new)
Article 237 – paragraph 3 – point c a (new)
(ca) that Member States, where duly justified, may allow their supervisory authorities to require that the group support declared by the parent undertaking in respect of a subsidiary which they have authorised must be covered by a guarantee provided by an undertaking which is not a related undertaking of the parent undertaking. Such undertaking shall be a credit institution or an insurance undertaking, and shall provide evidence that it meets its own regulatory capital requirements and has a top credit rating.
Amendment 665 #
Proposal for a directive
Article 238
Article 238
Amendment 668 #
Proposal for a directive
Article 238 – paragraph 1
Article 238 – paragraph 1
Amendment 678 #
Proposal for a directive
Article 238 – paragraph 2
Article 238 – paragraph 2
2. Where the Solvency Capital Requirement is no longer fully covered by the combination of own funds eligible under Article 98(4) and the amount of group support declared in accordance with Article 237, but the subsidiary meets Article 237 and the own funds eligible under Article 98(5) are sufficient to cover the minimum capital requirement, the supervisory authority mayshall call on the parent undertaking to provide a new declaration bringing the group support to the amount necessary to ensure that the Solvency Capital Requirement is again fully covered.
Amendment 684 #
Proposal for a directive
Article 238 – paragraph 3
Article 238 – paragraph 3
3. Where the Solvency Capital Requirement is no longer fully covered by the combination of own funds eligible under Article 98(4) and the amount of group support declared in accordance with Article 237, and the own funds eligible under Article 98(5) are not sufficient to cover the minimum capital requirement, or the subsidiary does not meet the conditions laid down in Article 237, the supervisory authority mayshall call on the parent undertaking to transfer own funds eligible under Article 98(4) and (5) to the extent necessary to ensure that the minimum capital requirement is again coveredsubsidiary again meets the conditions laid down in Article 237, and to provide a new declaration bringing the group support to the amount necessary to ensure that the Solvency Capital Requirement is again fully covered.
Amendment 690 #
Proposal for a directive
Article 238 – paragraph 4 – subparagraph 1
Article 238 – paragraph 4 – subparagraph 1
4. Before accepting any new declaration referred to in paragraphs 2 or 3, the group supervisor shall verify that thThe group supervisor and the supervisory authority having authorised the subsidiary will accept or deny a new declaration within one cmonditionsth, in accordance with the procedure laid down in Article 237 are met5.
Amendment 696 #
Proposal for a directive
Article 238 – paragraph 4 – subparagraph 2
Article 238 – paragraph 4 – subparagraph 2
Where the parent undertaking does not provide the new declaration requested, or where the new declaration provided is not accepted, the derogations provided for in Articles 236 and 237 and in paragraph 1 shall cease to apply. parent undertaking shall transfer within one month the own funds resulting from the most recent declaration accepted, in form of elements under Article 98(4) and assets as set out in Article 234(c).
Amendment 702 #
Proposal for a directive
Article 238 – paragraph 4 – subparagraph 3
Article 238 – paragraph 4 – subparagraph 3
Amendment 709 #
Proposal for a directive
Article 239
Article 239
Amendment 710 #
Proposal for a directive
Article 239 – title
Article 239 – title
Subsidiaries of an insurance or reinsurance undertaking: winding-up undertaking: other situations of call of the group support
Amendment 711 #
Proposal for a directive
Article 239
Article 239
Amendment 712 #
Proposal for a directive
Article 240
Article 240
Amendment 713 #
Proposal for a directive
Article 240 – paragraph 1 – subparagraph 2
Article 240 – paragraph 1 – subparagraph 2
Where the parent undertaking does not rapidly transfer eligible own funds to the subsidiary in form of assets as set out in Article 234(c), within one month after it has first been required by the supervisory authority that authorised the undertaking, the group supervisor shall: (a) use all powers available, including the power available under Article 142, to ensure that the group provides the requested transfer as soon as is practicable. within two months of its initial requirement, including the call to guarantees in accordance with Article 237(3)(e); (b) initiate the relevant procedure to impose, where appropriate, a proportionate and dissuasive sanction to the parent undertaking, and require sufficient compensation.
Amendment 716 #
Proposal for a directive
Article 240 – paragraph 2 – subparagraph 1
Article 240 – paragraph 2 – subparagraph 1
2. Group support may only be provided from eligiblebasic own funds and assets present in the parent undertaking or in any subsidiary, subject to that subsidiary, subject to that parent undertaking, where it is an insurance or reinsurance undertaking, having eligible own funds in excess of its minimumsolvency capital requirement. The supervisory authority having authorised that subsidiary shall not prevent the transfer of such excess eligible own funds.
Amendment 722 #
Proposal for a directive
Article 240 – paragraph 2 – subparagraph 2
Article 240 – paragraph 2 – subparagraph 2
Amendment 724 #
Proposal for a directive
Article 240 – paragraph 3
Article 240 – paragraph 3
3. Before accepting any new declaration made in accordance with paragraph 2, the group supervisor shall verify that the conditions laid down in Article 237 are met. However, where any transfer is carried out in accordance with paragraph 1, the group supervisor shall verify that the group continues to have sufficient eligible own funds to cover its group Solvency Capital Requirement and group support declared as set out in Article 237. Where this requirement is no longer satisfied, the group supervisor shall inform the other supervisory authorities concerned and take appropriate measures to ensure that the necessary actions are taken by the group within an acceptable period of timtwo months of its non- compliance.
Amendment 725 #
Proposal for a directive
Article 241
Article 241
Amendment 726 #
Proposal for a directive
Article 242
Article 242
Amendment 728 #
Proposal for a directive
Article 242 – paragraph 1 – subparagraph 1 – introductory part
Article 242 – paragraph 1 – subparagraph 1 – introductory part
1. The derogations provided for in Articles 236, 237 and 238 237 shall cease to apply in the following cases:
Amendment 729 #
Proposal for a directive
Article 242 – paragraph 1 – subparagraph 1 – point b
Article 242 – paragraph 1 – subparagraph 1 – point b
(b) the conditions referred to in Article 234(b), (c) or (da) and Article 237 is no longer complied with and the group does not restore compliance with thisose conditions in an appropriate period of time.
Amendment 731 #
Proposal for a directive
Article 242 – paragraph 1 – subparagraph 4
Article 242 – paragraph 1 – subparagraph 4
Without prejudice to the third subparagraph, the group supervisor and the supervisory authority concerned shall verify at least once a year, on its own initiative, that the condition referred to in Article 234(b) continues to be complied with. The group supervisor shall also perform such verification upon request from the supervisory authority concerned, where the latter has significant concerns related to the ongoing, (c) or (da) and Article 237 continues to be complianced with this condition. Where the verification performed identifies weaknesses, the group supervisor shall requireboth by the parent undertaking to present a pland tohe restore compliance within an appropriate period of timelated insurance and reinsurance undertaking.
Amendment 732 #
Proposal for a directive
Article 242 – paragraph 1 – subparagraph 5
Article 242 – paragraph 1 – subparagraph 5
If the group supervisor or the supervisory authority concerned determines that the plan referred to in the third or fourth subparagraph is insufficient or subsequently that it is not being implemented within the agreed period of time, ithe group supervisor shall conclude that the condition referred to in Article 234(b) is no longer complied with and it shall immediately inform the other supervisory authority concerned.
Amendment 733 #
Proposal for a directive
Article 242 – paragraph 2
Article 242 – paragraph 2
2. When the derogations provided for in Articles 236, 237 and 238 237 cease to apply, the supervisory authority having authorised the subsidiary shall regain full responsibility for settingtake appropriate measures to ensure that the Solvency Capital Requirement of the subsidiary and taking appropriate measures to ensure that it is adequately met by own funds eligible under Article 98(4). The parent undertaking shall however not be released from the commitments resulting from the most recent declarations accepted in accordance with Articles 237, 238 and 240.
Amendment 736 #
Proposal for a directive
Article 243
Article 243
Amendment 741 #
Proposal for a directive
Article 244 – paragraph 1
Article 244 – paragraph 1
Amendment 743 #
Proposal for a directive
Article 244 – paragraph 1 – subparagraph 2 a (new)
Article 244 – paragraph 1 – subparagraph 2 a (new)
The parent undertaking shall not, however, be released from the commitments to transfer the full amounts resulting from the most recent declarations accepted.
Amendment 745 #
Proposal for a directive
Article 244 – paragraph 1
Article 244 – paragraph 1
1. WIn order to guarantee that all policyholders of the group receive an equivalent and non-discriminatory level of protection, where several requests to transfer eligible own funds are addressed to the parent undertaking and the group supervisor in accordance with Articles 238 or 239, and the group does not have sufficient eligible own funds to meet all of those together, the group shall reallocate its own funds and the amounts resulting from the most recent declarations accepted shall be reduced where necessary. The reduction shall be calculated for each subsidiary with a view to ensuring that each subsidiary is subject to, in order to ensure that: (a) the parent undertaking and all the insurance or reinsurance undertakings with group support have the same ratio between the sum of its available assets and any transfer from the group on the one hand and the sum of its technical provisions and its minimumsolvency capital requirement on the other hand, (b) that the quality of tiers integrating their own funds is sufficiently similar.
Amendment 747 #
Proposal for a directive
Article 244 – paragraph 2
Article 244 – paragraph 2
Amendment 750 #
Proposal for a directive
Article 245
Article 245
Amendment 753 #
Proposal for a directive
Article 246
Article 246
Amendment 756 #
Proposal for a directive
Article 247
Article 247
Amendment 757 #
Proposal for a directive
Article 248 – paragraph 2 - subparagraph 3
Article 248 – paragraph 2 - subparagraph 3
The risk concentrations at group level shall be subject to supervisory review by the group supervisor in accordance with Article 253.
Amendment 759 #
Proposal for a directive
Article 248 – paragraph 3 - subparagraph 3
Article 248 – paragraph 3 - subparagraph 3
In order to identify significant risk concentration at group level to be reported, the group supervisor, after consultation of the other supervisory authorities concerned and the group, shall impose appropriate thresholds based on solvency capital or technical provisions or both.
Amendment 760 #
Proposal for a directive
Article 248 – paragraph 3 - subparagraph 4
Article 248 – paragraph 3 - subparagraph 4
When reviewing the risk concentrations at group level, the group supervisor shall in particular monitor the possible risk of contagion in the group, the risk of a conflict of interests, and the level or volume of risks.
Amendment 761 #
Proposal for a directive
Article 248 – paragraph 4 - subparagraph 1
Article 248 – paragraph 4 - subparagraph 1
4. The Commission may adopt implementing measures, as regards the definition and identification of a significant risk concentration at group level and the reporting on such a risk concentration, for the purposes of paragraphs 2 and 3.
Amendment 763 #
Proposal for a directive
Article 250 – paragraph 3
Article 250 – paragraph 3
3. The systems and reporting procedures at group level referred to in paragraphs 1 and 2 shall be subject to supervisory review by the group supervisor, in accordance with the rules laid down in Chapter III and Articles 253 and 254.
Amendment 764 #
Proposal for a directive
Article 250 – paragraph 4 – subparagraph 1
Article 250 – paragraph 4 – subparagraph 1
4. Member States shall require the participating insurance or reinsurance undertaking or the insurance holding company to undertake at the level of the group the assessment required by Article 44. The own risk and solvency assessment conducted at group level shall be subject to supervisory review by the group supervisor in accordance with Chapter III and Articles 253 and 254.
Amendment 767 #
Proposal for a directive
Article 250 – paragraph 4 – subparagraph 2
Article 250 – paragraph 4 – subparagraph 2
Where the participating insurance or reinsurance undertaking or the insurance holding company so decides, and subject to the agreement of the group supervisor and the supervisory authorities concerned, it may undertake any assessments required by Article 44 at the level of the group and at the level of any subsidiary in the group at the same time, and may produce a single document covering all the assessments. This information in that single document shall be presented in a way to allow the separate assessment of each insurance and reinsurance undertaking.
Amendment 779 #
Proposal for a directive
Article 252 –Title
Article 252 –Title
Rights and duties of the group supervisor – Coordination arrangements College of supervisors
Amendment 784 #
Proposal for a directive
Article 252 – paragraph 2
Article 252 – paragraph 2
2. In order to facilitate group supervision, the group supervisor and the other supervisory authorities concerned shall have coordination arrangements in place. Those coordination arrangements may entrust additional tasks to the group supervisor and may specify, without prejudice to any measure adopted pursuant to this Directive, the procedures for the decision-making process among the supervisory authorities concerned as referred to inestablish a single college of supervisors to coordinate the exercise of tasks referred to in Articles 253, 254 and 255. The college of supervisors shall assure that cooperation, exchange of information and consultation processes among the supervisory authorities of the college, are effectively applied in accordance with Title III of this Directive. Supervisors shall use the college to promote convergence of their respective decisions and to cooperate closely to carry out their supervisory activities across the group under harmonised criteria. The membership of the college shall include the supervisory authorities of all the Member States in which the parent undertaking, related undertakings and significant branches are operating. The activities of the college of supervisors shall be proportionate to the nature, scale and complexity of the group. Without prejudice to any measure adopted pursuant to this Directive, the setting up and functioning of colleges shall be based on a written agreement concluded by all the members of the college, reflecting the procedures necessary to achieve its objectives, including the processes related to the approval of the group internal model and the functioning of the group support regime. Provided that cooperation, convergence and exchange of information is appropriately guaranteed, the procedures of the college shall provide flexibility to allow arrangements among supervisory authorities, in the cases where this results in a more efficient supervision of the group, and it does not impair the supervisory activities of the members of the college in respect of their individual responsibilities. The college of supervisors shall be informed of any coordination arrangement among its members, and, in particular, before such coordination arrangements take effect when they entrust additional tasks to the group supervisor or other supervisory authorities concerned, or when they affect the application in practice of Articles 211(3), 212(2), and 213(2), Articles 214, 215, and 217, Articles 218(2), 219(2), and 225(2), Articles 236, 248, and 249, Article 251 (3) and (4), and Articles 254, 263 and 264 and for cooperation with other supervisory authorities.
Amendment 789 #
Proposal for a directive
Article 252 – paragraph 2 a (new)
Article 252 – paragraph 2 a (new)
2a. CEIOPS shall elaborate guidelines for the operational functioning of colleges.
Amendment 792 #
Proposal for a directive
Article 252 – paragraph 2 b (new)
Article 252 – paragraph 2 b (new)
2b. The college of supervisors shall have the possibility to request that CEIOPS provide advice or mediation when it considers appropriate to achieve a convergent supervision among colleges.
Amendment 801 #
Proposal for a directive
Article 260 – paragraph 2 – introductory part
Article 260 – paragraph 2 – introductory part
2. Where a participating insurance or reinsurance undertaking or an insurance holding company so decides, and subject to the previous agreement of the group supervisor and the supervisory authorities concerned, it may provide a single solvency and financial condition report which shall comprise the following:
Amendment 802 #
Proposal for a directive
Article 260 – paragraph 2 – point b
Article 260 – paragraph 2 – point b
(b) the information for any of the subsidiaries within the group which must be individually disaggregated and identifiable and disclosed in accordance with Articles 50 and 52 to 54, in such a way that the supervisor of the subsidiary has equivalent amount and access to the information as in the case of a separated report.
Amendment 804 #
Proposal for a directive
Article 263 – paragraph 1 – subparagraph 2
Article 263 – paragraph 1 – subparagraph 2
The verification shall be carried out by the supervisory authority which would be the group supervisor if the criteria set out in Article 251(2) were to apply, at the request of the parent undertaking or of any of the insurance and reinsurance undertakings authorised in the Community or on its own initiative, unless the Commission had concluded previously in respect of the equivalence of the third country involved. That supervisory authority shall consult the other supervisory authorities concerned, and the Committee of European Insurance and Occupational Pensions Supervisors, before taking a decisubmitting its proposal on equivalence to the Commission.
Amendment 807 #
Proposal for a directive
Article 277 – paragraph 1 – point a
Article 277 – paragraph 1 – point a
(a) with respect to assets representing the technical provisions, insurance claims shall take absolute precedence over any other claim on the insurance undertaking. In respect of the other assets, the commitments of any nature assumed with other insurance undertaking of its own group as a consequence of the group support regime, shall have absolute precedence over any other claim of the insurance or undertaking in winding up;
Amendment 808 #
Proposal for a directive
Article 277 – paragraph 1 – point b – introductory part
Article 277 – paragraph 1 – point b – introductory part
(b) with respect to the whole of the assets of the insurance undertaking, insurance claims, and legal commitments of group support provided by the insurance or reinsurance undertaking in winding up, shall take precedence over any other claim on the insurance undertaking with the only exception of the following:
Amendment 810 #
Proposal for a directive
Article 304 – paragraph 3 a (new)
Article 304 – paragraph 3 a (new)
3a. Where reference is made to Article 304(3), the implementing measures set out in this Directive shall be developed according the principles of neutrality, relevancy and security: (a) neutrality means that they shall provide a level playing field, preventing distortion in competition within financial markets; (b) relevancy means that they shall contain any necessary legal or technical measures that have or may have a significant impact on the manner insurance and reinsurance undertakings manage their business and risks, on competition, on supervisory convergence and on consumer protection; (c) security means that they shall provide insurance and reinsurance undertakings, supervisors and consumers a certain, clear and detailed knowledge of their rights, obligations and application in practice.