Activities of Sharon BOWLES 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 (75)
Amendment 33 #
Proposal for a directive
Recital 70
Recital 70
(70) It is necessary to ensure that own funds are appropriately distributed within the group and available to protect policyholders and beneficiaries where needed. To this end insurance and reinsurance undertakings within a group should have sufficient own funds to cover their solvency capital requirement, unless the objective of protection of policyholders and beneficiaries can effectively be achieved otherwise. Insurance and reinsurance undertakings within a group should therefore be authorised to cover their Solvency Capital Requirement with group support declared by their parent undertaking, under defined circumstances. For the equal protection of all policyholders, Member States should provide for free movement of assets and liabilities to enable solvency capital and eligible own funds to be reconfigured within a group for the purposes of group support and without risk of suspensive actions. For those Member States where such movement is not yet guaranteed, group support should in the interim period additionally include those instruments or other mechanisms necessary to ensure that funds are transferred in good time. Member States shall also ensure that claims arising from group support commitments are treated as equivalent to insurance claims. In order to assess the need for and prepare any possible future revision of the group support regime, the Commission should report on the rules of the Member States and the practices of the supervisory authorities in this field.
Amendment 34 #
Proposal for a directive
Recital 87 a (new)
Recital 87 a (new)
Amendment 37 #
Proposal for a directive
Article 27 – paragraph 1 a (new)
Article 27 – paragraph 1 a (new)
Member States shall recognise a right to reparation for policyholders, funded by the Member States themselves, in circumstances of gross negligence or bad faith on the part of supervisory authorities.
Amendment 49 #
Proposal for a directive
Article 142 – paragraph 1 – subparagraph 2 (new)
Article 142 – paragraph 1 – subparagraph 2 (new)
For the purposes of point (c), an insurance or reinsurance undertaking shall be bound by its calculation of the Minimum Capital Requirement in accordance with paragraphs 1 and 2 of this Article, unless that calculation is shown to be manifestly wrong.
Amendment 50 #
Proposal for a directive
Article 234 – paragraph 1 – point c a (new)
Article 234 – paragraph 1 – point c a (new)
(ca) the primary source of group support is own funds transferred from the parent undertaking to its subsidiary; in the event that group support may be provided from resources available in a subsidiary, legally enforceable contracts or other mechanisms shall be in place to enable the transfer of eligible own funds;
Amendment 51 #
Proposal for a directive
Article 237 – paragraph 2
Article 237 – paragraph 2
2. The group support shall take the form of a declaration to the group supervisor, expressed in a legally binding doccollege of supervisors, via the group supervisor, including where necessary evidence of legally enforceable instrument ands constituting a commitment to transfer own funds eligible under Article 98(5).
Amendment 52 #
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 and any necessary accompanying instrument meets all requirements existing under thea law of the parent undertaking to be recognised as a legal commitmenenforceable in the Member State of the undertaking providing group support, and that any recourse before a legal or administrative body shall not have suspensive effect, and including the establishment of group support up to the limit of the most recent declaration, or as provided under Article 244(1) when relevant, and ranking equivalent to policyholder claims including in circumstances of reorganisation, composition, assignment, take-over or any other administrative proceedings.
Amendment 53 #
Proposal for a directive
Article 240 – paragraph 2 – subparagraph 1
Article 240 – paragraph 2 – subparagraph 1
2. Group support may be provided from eligible own funds present in the parent undertaking or in any subsidiary, subject to that subsidiary, where it is an insurance or reinsurance undertaking, having eligible own funds in excess of its min the latter case to the parent undertaking demonstrating to the reasonable satisfaction of the group supervisor that sufficient eligible own funds are available within the group to be readily transferred under all reasonable assumptions. Where the subsidiary is an insurance or reinsurance undertaking, support may not be provided from that subsidiary to the extent that this would cause the subsidiary to fail to meet the Minimum cCapital rRequirement. The supervisory authority having authorised that subsidiary shall not prevent the transfer of such excess eligible own fundsresources from that subsidiary in implementation of a request for group support guarantee.
Amendment 54 #
Proposal for a directive
Article 244
Article 244
Subsidiaries of an insurance or reinsurance undertaking: reduction of group supportsequal treatment 1. 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 amounts resulting from the most recent declarations acceptedfollowing rules shall apply: (a) all insurance and reinsurance undertakings which are subsidiaries of the parent undertaking shall be held jointly responsible, together with the parent undertaking, up to the amounts resulting from the most recent declarations accepted in respect of each subsidiary which is subject to the rules laid down in Articles 236 to 241; (b) the amounts referred to in point (a) shall be reduced where necessary. The reduction shall be calculated for each subsidiary with a view to ensuring that each subsidiary is subject to 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 minimum capital requirement on the other hand. 2. Notwithstanding Article 277, Member States shall ensure that liabilities resulting from insurance contracts entered into by the parent undertaking are not treated more favourably than liabilities resulting from insurance contracts entered into by any subsidiary which is subject to the rules laid down in Articles 236 to 241.
Amendment 78 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14a) Basing supervision on qualitative as well as quantitative risk management principles is likely to require an increase in supervisory resources.
Amendment 79 #
Proposal for a directive
Recital 14 b (new)
Recital 14 b (new)
(14b) The supervision of reinsurance activity shall take account of the special characteristics of reinsurance business, notably its global nature and the fact that the policyholders are themselves insurance or reinsurance undertakings.
Amendment 83 #
Proposal for a directive
Recital 23
Recital 23
(23) It is necessary to promote supervisory convergence not only in respect of supervisory tools but also in respect of supervisory practices. The Committee of European Insurance and Occupational Pensions Supervisors established by Commission Decision 2004/6/EC should play an important role in this respect and report regularly on the progress made. Legal basis should be provided and legal personality should be conferred on the Committee, commensurate with its responsibilities and authority.
Amendment 88 #
Proposal for a directive
Recital 35
Recital 35
(35) The supervisory regime should provide for a risk-sensitive requirement, which is based on a prospective calculation to ensure accurate and timely intervention by supervisory authorities (the Solvency Capital Requirement), and a minimum level of security below which the amount of financial resources should not fall (the Minimum Capital Requirement). The Minimum Capital Requirement should be linked to the Solvency Capital Requirement as a percentage thereof. Both capital requirements should be harmonised throughout the Community in order to achieve a uniform level of protection for policyholders.
Amendment 108 #
Proposal for a directive
Recital 70
Recital 70
(70) It is necessary to ensure that own funds are appropriately distributed within the group and available to protect policyholders and beneficiaries where needed. To this end insurance and reinsurance undertakings within a group should have sufficient own funds to cover their solvency capital requirement, unless the objective of protection of policyholders and beneficiaries can effectively be achieved otherwise. Insurance and reinsurance undertakings within a group should therefore be authorised to cover their Solvency Capital Requirement with group support declared by their parent undertaking, under defined circumstances. For the equitable protection of all policyholders of a group, Member States should provide for the free movement of assets and liabilities to enable solvency capital and eligible own funds to be reconfigured within a group for the purposes of group support and without risk of suspensive actions. For those Member States where such movement is not yet guaranteed, group support should, in the interim, additionally include those instruments or other mechanisms necessary to ensure that funds are transferred in good time. Member States shall also ensure that the fulfilment of group support commitments in the event of insolvency at the group level takes place in an equitable manner, having regard to priority of insurance claims over reinsurance. In order to assess the need for and prepare any possible future revision of the group support regime, the Commission should report on the rules of the Member States and the practices of the supervisory authorities in this field.
Amendment 113 #
Proposal for a directive
Recital 75
Recital 75
(75) The sSupervisory authorities should have access to all the information relevant to the exercises from all Member States in which an undertaking in the group is established should be involved in group supervision as a college of supervisors. They should all have access to documentation as a matter of group supervisiontine and should be dynamically involved in decision-making. Cooperation between the authorities responsible for the supervision of insurance and reinsurance undertakings as well as between those authorities and the authorities responsible for the supervision of undertakings active in other financial sectors should be established.
Amendment 114 #
Proposal for a directive
Recital 75 a (new)
Recital 75 a (new)
(75a) Host state supervisors, for branches as well as subsidiaries, should be able to carry out an effective conduct of business supervision of undertakings operating on their territory, with assistance and information pertaining to the financial state of such undertakings provided by the home State supervisors and through the college of supervisors. National supervisors should make all necessary efforts to cooperate directly and through the college of supervisors so as to ensure that complaints that concern areas that are linked to both prudential matters and the conduct of business are properly and exhaustively dealt with. Host state supervisors should actively assist complainants, help them to direct their complaints to the appropriate destination, and support them as necessary throughout the resulting process.
Amendment 115 #
Proposal for a directive
Recital 87 a (new)
Recital 87 a (new)
(87a) Failures of supervisory authorities for gross negligence or through bad faith, should be actionable, in accordance with the Francovich case1. Supervisory standards are ultimately the responsibility of Member States and each Member State should therefore ensure that policyholders, whether from that Member State or from another, are adequately protected under national law and without having to establish their right of action. ____________________ 1 Joined Cases C-6/90 and C-9/90, Francovich [1991] ECR I-5357.
Amendment 116 #
Proposal for a directive
Recital 93 a (new)
Recital 93 a (new)
(93a) Recasting the applicable instruments and, consequently, repealing Directive 2002/83/EC should not necessarily lead to pension funds becoming subject to new solvency rules. The review of Directive 2003/41/EC, which was due in 2007, should be carried out by the Commission as quickly as possible. In this regard, the Commission should submit to the European Insurance and Occupational Pensions Committee and the European Parliament, no later than six months after the entry into force of this Directive, a report on the solvency rules for institutions for occupational retirement provision (IORPs) and other equivalent arrangements, with a view to ensuring appropriate protection and including relevant comparison with insurance and tax based schemes. Such analysis should, nevertheless, take full account of the differences in products and institutions between IORPS, book reserves and insurance companies as well as national differences.
Amendment 144 #
Proposal for a directive
Article 13 – point 4 a (new)
Article 13 – point 4 a (new)
(4a) 'dedicated reinsurer' means an insurer: (a) the insurance business of which is restricted to the reinsurance of a cedant (syndicate or undertaking that transfers risk to the dedicated reinsurer) and the cedant's subsidiaries on terms that allow the cedant at any time to cancel the reinsurance arrangements and upon any such cancellation immediately transfer the assets and liabilities of the reinsurer to the cedant; and (b) which directly or indirectly: (i) is wholly owned by the cedant or the members of the cedant; or (ii) wholly owns the cedant.
Amendment 153 #
Proposal for a directive
Article 27
Article 27
Member States shall ensure that the supervisory authorities are provided with the necessary means, and have the relevant expertise and capacity, to achieve the main objective of supervision, namely the protection of policyholders and beneficiaries.
Amendment 161 #
Proposal for a directive
Article 28 – paragraph 3
Article 28 – paragraph 3
3. Member States shall ensure that the requirements laid down in this Directive are applied in a manner which is proportionate to the nature, complexity and scale of the risks inherent in the business of an insurance or reinsurance undertaking, even if the undertaking is not significant for the overall financial stability of the market.
Amendment 170 #
Proposal for a directive
Article 34 – paragraph 6
Article 34 – paragraph 6
6. Supervisory powers shall be applied in a timely and proportionate manner. Supervisors shall take account of actions that might be pro-cyclical in times of market-wide stress, at all times taking full account of the interests of the policyholder .
Amendment 174 #
Proposal for a directive
Article 36 – paragraph 6 a (new)
Article 36 – paragraph 6 a (new)
6a. Supervisors may take account of the effects on risk and asset management of voluntary codes of conduct and transparency adhered to by the relevant institutions dealing in unregulated or alternative investment instruments.
Amendment 175 #
Proposal for a directive
Article 36 – paragraph 6 b (new)
Article 36 – paragraph 6 b (new)
6b. Member States shall ensure that their courts accept Minimum Capital Requirement and Solvency Capital Requirement values that have been established through the supervisory processes, unless those values are manifestly wrong.
Amendment 182 #
Proposal for a directive
Article 43 – paragraph 1 – subparagraph 1
Article 43 – paragraph 1 – subparagraph 1
1. Insurance and reinsurance undertakings shall have in place an effective risk management system comprising strategies, processes and reporting procedures necessary to monitor, manage and report, on a continuousn ongoing basis the risks, on an individual and aggregated level, to which they are or could be exposed, and their interdependencies.
Amendment 183 #
Proposal for a directive
Article 43 – paragraph 1 – subparagraph 2
Article 43 – paragraph 1 – subparagraph 2
That risk management system shall be effective and well integrated into the organisational structure of the insurance or reinsurance undertaking, with proper consideration at high executive level. It shall contain contingency plans.
Amendment 185 #
Proposal for a directive
Article 44 – paragraph 1 – point (b)
Article 44 – paragraph 1 – point (b)
(b) the compliance, on a continuousn ongoing basis, with the capital requirements, as laid down in Chapters VI, Sections 4 and 5 and with the requirements regarding technical provisions, as laid down in Chapter VI, Section 2.
Amendment 197 #
Proposal for a directive
Article 47 – paragraph 2
Article 47 – paragraph 2
2. The actuarial function shall be carried out by persons with sufficient knowledge of actuarial and financial mathematics and able where appropriate,, having capacity proportionate to the complexity and risk structure of the undertaking concerned, and able to demonstrate their relevant experience and expertise with applicable professional and other standards.
Amendment 203 #
Proposal for a directive
Article 49 – point 4 a (new)
Article 49 – point 4 a (new)
(4a) the scope and methods for the own- risk and solvency assessment as set out in Article 44.
Amendment 206 #
Proposal for a directive
Article 50 - paragraph 1– subparagraph 2 – point e – point iii
Article 50 - paragraph 1– subparagraph 2 – point e – point iii
(iii) summary information allowing a proper understanding of the main differences between the standard formula and any internal model used by the undertaking for the calculation of its Solvency Capital Requirement and of the main factors influencing the insurance or reinsurance undertaking's risk profile including the capital requirements;
Amendment 210 #
Proposal for a directive
Article 53 – paragraph 1 – subparagraph 3
Article 53 – paragraph 1 – subparagraph 3
In the cases referred to in point (a) of the second subparagraph, the supervisory authorities shall require the undertaking concerned to disclose immediately the amount of the non compliance, together with an explanation of its origin and consequences, including any remedial measure taken. Where, in spite of a recovery plan initially considered to be viable, a non compliance with the Minimum Capital Requirement has not been resolved twohree months after its observation, it shall be disclosed at the end of that period, together with an explanation of its origin and consequences, including any further remedial measure taken.
Amendment 211 #
Proposal for a directive
Article 53 – paragraph 1 – subparagraph 4
Article 53 – paragraph 1 – subparagraph 4
In the case referred to in point (b) of the second subparagraph, the supervisory authorities shall require the undertaking concerned to disclose immediately the amount of the non compliance, together with an explanation of its origin and consequences, including any remedial measure taken. Where, in spite of the recovery plan initially considered to be viable, a significant non compliance with the Solvency Capital Requirement has not been resolved foursix months after its observation, it shall be disclosed at the end of that period, together with an explanation of its origin and consequences, including any further remedial measure taken.
Amendment 217 #
Proposal for a directive
Article 70
Article 70
Member States shall ensure that the supervisory authorities participate in the activities of the Committee of European Insurance and Occupational Pensions Supervisors pursuant to the second paragraph of Article 2 of Commission Decision 2004/6/EC, and that national mandates conferred on supervisors do not inhibit the performance by them of their duties as members of that Committee or under this Directive.
Amendment 235 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 2
Article 74 – paragraph 1 – subparagraph 2
When valuing insurance liabilities, no adjustment to take account of the own credit standing of the insurance or reinsurance undertaking shall be made.
Amendment 236 #
Proposal for a directive
Article 74 – paragraph 1 – subparagraph 2 a (new)
Article 74 – paragraph 1 – subparagraph 2 a (new)
When valuing liabilities other than insurance liabilities, an adjustment may be made to take account of the own credit standing of the insurance or reinsurance undertaking on the inception of the liabilities alone.
Amendment 241 #
Proposal for a directive
Article 75 – paragraph 3
Article 75 – paragraph 3
3. The calculation of technical provisions shall make use of and be consistent with information provided by the financial markets and generally available data on insurance and reinsurance technicalunderwriting risks (market consistency).
Amendment 247 #
Proposal for a directive
Article 76 – paragraph 2 – subparagraph 1
Article 76 – paragraph 2 – subparagraph 1
2. The best estimate shall be equal toconsistent with the probability-weighted average of future cashflows, taking account of the time value of money (expected present value of future cash-flows), using the relevant risk-free interest rate term structure.
Amendment 248 #
Proposal for a directive
Article 76 – paragraph 3
Article 76 – paragraph 3
3. The risk margin shall be such as to ensure that the value of the technical provisions is equivalent to the amount insurance and reinsurance undertakings would be expected to require taking over and meet the insurance and reinsurance obligations, taking proper account of diversification effects.
Amendment 249 #
Proposal for a directive
Article 76 – paragraph 4– subparagraph 2
Article 76 – paragraph 4– subparagraph 2
However, where the future cash flows associated with insurance or reinsurance obligations can be replicatedestimated reliably using financial instruments for which a market value is directly observable, the value of technical provisions shall be determined on the basis of the market value of those financial instruments even where exact replication is not possible. In this case, separate calculations of the best estimate and the risk margin shall not be required. Reasonable interpolations and extrapolations from directly observable market values may also be applied for the purpose of that assessment.
Amendment 250 #
Proposal for a directive
Article 76 – paragraph 5 – subparagraph 2
Article 76 – paragraph 5 – subparagraph 2
The rate used in the determination of the cost of providing that amount of eligible own funds (Cost-of-Capital rate) shall be the same for all insurance and reinsurance undertakings and shall be reviewed periodically to reflect market conditions.
Amendment 251 #
Proposal for a directive
Article 76 – paragraph 5 – subparagraph 3
Article 76 – paragraph 5 – subparagraph 3
The Cost-of-Capital rate used shall be equal to the additional rate, above the relevant risk-free interest rate, that an insurance or reinsurance undertaking would incur holding an amount of eligible own funds, as set out in Section 3, equal to the Solvency Capital Requirement would necessary to support the insurance and reincsur to hold those fundsance obligation over the lifetime of that obligation.
Amendment 252 #
Proposal for a directive
Article 77 – point 3
Article 77 – point 3
(3) all payments to policyholders and beneficiaries, including future discretionary bonuses, which insurance and reinsurance undertakings expect to make, after allowing for reasonable management actions, such as future discretionary bonuses, whether or not these payments are contractually guaranteed, unless those payments fall under Article 90.
Amendment 257 #
Proposal for a directive
Article 80 – paragraph 3 a (new)
Article 80 – paragraph 3 a (new)
In calculating the technical provisions of a company reinsured by a dedicated reinsurer, the assets and liabilities of a dedicated reinsurer shall be treated as the assets and liabilities of the reinsured company, and no adjustment shall be made for the time difference between recoveries and direct payments or expected losses due to the default of the counterparty in respect of the dedicated reinsurer's contractual obligations to the reinsured company.
Amendment 275 #
Proposal for a directive
Article 90
Article 90
In so far as authorised under national law, for a Member State, realised profits appearing as surplus funds in the statutory annual accounts shall not be considered as insurance and reinsurance liabilities, to the extent that these surplus funds may be used to cover any losses which may arise and where they have not been made available for distribution to policyholders and beneficiaries. Such funds may only be used in the Member State concerned and may not be used as collateral for use outside the Member State concerned.
Amendment 354 #
Proposal for a directive
Article 103 – paragraph 4 – subparagraph 2
Article 103 – paragraph 4 – subparagraph 2
Where appropriate, diversification or specialisation effects shall be taken into account in the design of each risk module.
Amendment 367 #
Proposal for a directive
Article 105 – paragraph 5 – subparagraph 1
Article 105 – paragraph 5 – subparagraph 1
5. The market risk module shall reflect the risk arising from the level or volatility of market prices of financial instruments which have an impact upon the value of the assets and liabilities of the undertaking. It shall properly reflect the structural mismatch between assets and liabilities, in particular with respect to the duration thereof. For the avoidance of doubt this does not override Article 104.
Amendment 380 #
Proposal for a directive
Article 105 – paragraph 6 a (new)
Article 105 – paragraph 6 a (new)
6a. The assets and liabilities of a dedicated reinsurer shall be treated as the assets and liabilities of the company that it has reinsured, so that in calculating the reinsured company's solvency, no adjustment shall be made for counterparty default risk or market risk concentrations in respect of the dedicated reinsurer's contractual obligations to the reinsured company. The risks referred to in Article 101(4) that affect the dedicated reinsurer shall, however, be taken into account in calculating the Solvency Capital Requirement of the reinsured company.
Amendment 384 #
Proposal for a directive
Article 108 – paragraph 1
Article 108 – paragraph 1
Insurance and reinsurance undertakings may use a simplified calculation for a specific sub-module or risk module where the nature, scale and, complexity or specialisation of the risks they face justifies it and where it would be disproportionate to require all insurance and reinsurance undertakings to apply the standardised calculation.
Amendment 385 #
Proposal for a directive
Article 109 – paragraph 1 – subparagraph 1 – point c
Article 109 – paragraph 1 – subparagraph 1 – point c
(c) the correlation parameters and procedures for the updating of those parameters;
Amendment 392 #
Proposal for a directive
Article 110 – paragraph 7
Article 110 – paragraph 7
7. For a period of up to two years after having received approval from supervisory authorities to use an internal model, insurance and reinsurance undertakings shallmay be required to provide supervisory authorities with an estimate of the Solvency Capital Requirement determined in accordance with the standard formula, as set out in Subsection 2.
Amendment 395 #
Proposal for a directive
Article 117
Article 117
Where it is inappropriate to calculate the Solvency Capital Requirement in accordance with the standard formula, as set out in Subsection 2, because the risk profile of the insurance and reinsurance undertakings concerned deviates significantly from the assumptions underlying the Solvency Capital Requirement, the supervisory authorities may, in exceptional circumstances, by a decision stating the reasons, require the undertakings concerned to use an internal model to calculate the Solvency Capital Requirement, or the relevant risk modules of thereof.
Amendment 396 #
Proposal for a directive
Article 119 – paragraph 3 – subparagraph 1
Article 119 – paragraph 3 – subparagraph 1
3. Data used for the internal model shall be appropriately and sufficiently accurate, and complete and appropriaterehensive to justify the reliance placed on it.
Amendment 398 #
Proposal for a directive
Article 127 – paragraph 1 – introductory part
Article 127 – paragraph 1 – introductory part
1. The Minimum Capital Requirement shall be calibrated as a percentage of technical provisions equal to 33 % of the last Solvency Capital Requirement approved by the supervisor, consistent with a confidence level of 80 % over a one-year period. In addition, it shall be calculated in accordance with the following principles:
Amendment 408 #
Proposal for a directive
Article 127 – paragraph 1 – point c
Article 127 – paragraph 1 – point c
Amendment 425 #
Proposal for a directive
Article 127 – paragraph 2
Article 127 – paragraph 2
2. Insurance and reinsurance undertakings shall calculate the Minimum Capital Requirement at least quarterannually and report the results of that calculation to supervisory authorities.
Amendment 426 #
Proposal for a directive
Article 127 – paragraph 2 a (new)
Article 127 – paragraph 2 a (new)
2a. The supervisory authorities shall have the right to request that they be provided with the Minimum Capital Requirement calculations more frequently, but not more frequently than every quarter.
Amendment 430 #
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, and manage and control.
Amendment 432 #
Proposal for a directive
Article 130 – paragraph 2 – subparagraph 3
Article 130 – paragraph 2 – subparagraph 3
Assets held to cover the technical provisions shall also be invested in a manner appropriate to the nature and duration of the insurance and reinsurance liabilities. Those assets shall be invested infor the best interestgeneral good of policyholders and beneficiaries; taking into account any fully disclosed policy objective, such as ethical or environmental investment;
Amendment 438 #
Proposal for a directive
Article 131 – paragraph 1 – subparagraph 1 a (new)
Article 131 – paragraph 1 – subparagraph 1 a (new)
The first subparagraph shall be without prejudice to requirements which may be laid down by the supervisory authorities of the Member State of the commitment with regard to retail investors in relation to assets or reference values to which policy benefits may be linked where the investment risk is borne by the policyholders.
Amendment 447 #
Proposal for a directive
Article 142 – paragraph 1 – subparagraph 1– introductory part
Article 142 – paragraph 1 – subparagraph 1– introductory part
1. The supervisory authority of the home Member State, whilst continuing any relevant supervision, shall withdraw an authorisation granted to an insurance or reinsurance undertaking in the following cases:
Amendment 448 #
Proposal for a directive
Article 142 – paragraph 1– subparagraph 1 – point c
Article 142 – paragraph 1– subparagraph 1 – point c
(c) the undertaking does not comply with the Minimum Capital Requirement and the supervisory authority considers that the finance scheme submitted is manifestly inadequate or, the undertaking concerned fails to comply with the approved scheme within three months from the observation of the non-compliance with the Minimum Capital Requirement; the withdrawal of authorisation in these circumstances shall not result in any cessation of supervision with respect to safeguarding the interests of policyholders and overseeing any winding-up, takeover or similar proceedings.
Amendment 449 #
Proposal for a directive
Article 142 – paragraph 1 – subparagraph 1 a (new)
Article 142 – paragraph 1 – subparagraph 1 a (new)
For the purposes of point (c) of the first subparagraph, an insurance or reinsurance undertaking shall be bound by its calculation of the Minimum Capital Requirement in accordance with this paragraph and paragraph 2 unless that calculation is shown to be manifestly wrong.
Amendment 450 #
Proposal for a directive
Article 164 – paragraph 4 a (new)
Article 164 – paragraph 4 a (new)
4a. For these purposes, recoverables from reinsurance contracts shall be deemed to be kept in the Member State where the activities are carried out to the extent that they are recoverables from reinsurance contracts against one of the following: (a) undertakings, authorised in accordance with this Directive, (b) dedicated reinsurers, or (c) undertakings with a head office in a third country whose solvency regime is deemed to be equivalent in accordance with Article 170.
Amendment 511 #
Proposal for a directive
Article 220 – paragraph 3
Article 220 – paragraph 3
3. If the supervisory authorities consider thatWhere 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.
Amendment 513 #
Proposal for a directive
Article 220 – paragraph 4
Article 220 – paragraph 4
4. The sum of the own funds referred to in paragraphs 2 and 3 may not exceedWithout prejudice to paragraph 3 and for the purposes of Article 87(1): (a) surplus funds to which the provisions of Article 90 apply, shall not be considered as own funds eligible to cover the Solvency Capital Requirement of the participating insurance or reinsurance undertaking for which the group solvency is calculated; and (b) the share of basic own funds from a related undertaking associated with insurance obligations where investment risk is shared between policyholders and shareholders in which shareholders are eligible to participate shall be considered to be equivalent own funds eligible to cover the Solvency Capital Requirement of the relatedparticipating insurance or reinsurance undertaking. for which the group solvency is calculated. The allocation of own funds to shareholders shall be subject to supervisory review.
Amendment 514 #
Proposal for a directive
Article 220 – paragraph 5 a (new)
Article 220 – paragraph 5 a (new)
5a. The Commission shall adopt implementing measures laying down the specific criteria for the decision referred to in paragraph 3. Those measures, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 304(3).
Amendment 638 #
Proposal for a directive
Article 237 – paragraph 2
Article 237 – paragraph 2
2. The group support shall take the form of a declaration to the group supervisor,college of supervisors, via the group supervisor, including, where necessary, evidence of legally enforceable instruments expressed in a legally binding document and constituting a commitment to transfer own funds eligible under Article 98(5) up to a stated limit, subject to the provisions of Article 244 where they have been invoked.
Amendment 657 #
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 and any necessary accompanying instrument meets all requirements existing under thea law of the parent undertaking to be recognised as a legal commitment, and that any recourse before a legal or administrative bodyenforceable in the Member State of the undertaking providing group support and that any recourse before a legal or administrative body or reorganisation, composition, assignment, take-over or any other administrative proceedings shall not have suspensive effect.
Amendment 719 #
Proposal for a directive
Article 240 – paragraph 2 – subparagraph 1
Article 240 – paragraph 2 – subparagraph 1
2. Group support may be provided from eligible own funds present in the parent undertaking or in any subsidiary, subject to that subsidiary, where it is an insurance or reinsurance undertaking, having eligible own funds in excess of its min the latter case to the parent undertaking demonstrating to the reasonable satisfaction of the group supervisor that sufficient eligible own funds are available within the group to be readily transferred under all reasonable assumptions. Where the subsidiary is an insurance or reinsurance undertaking, support may not be provided from that subsidiary to the extent that this would cause the subsidiary to fail to meet the Minimum cCapital rRequirement. The supervisory authority having authorised that subsidiary shall not prevent the transfer of such excess eligible own funds. resources from that subsidiary in implementation of a request for group support guarantee.
Amendment 739 #
Proposal for a directive
Article 244 – title
Article 244 – title
Subsidiaries of an insurance or reinsurance undertaking: reduction of group supportsequal treatment
Amendment 748 #
Proposal for a directive
Article 244 – paragraph 1
Article 244 – paragraph 1
1. 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 amounts resulting from the most recent declarations accepted shall be reduced where necessaryfollowing rules shall apply: (a) undertakings that are subsidiaries of the parent undertaking shall be held jointly responsible, together with the parent undertaking, up to the amounts resulting from the most recent declarations accepted in respect of each subsidiary which is subject to the rules laid down in Articles 236 to 241; (b) the amounts referred to in point (a) shall be reduced where necessary with direct insurance ranking ahead of reinsurance. The reduction shall be calculated for each subsidiary with a view to ensuring that each subsidiary and the parent is subject to the same ratio between the sum of its available assets and any transfer from or to the group on the one hand and the sum of its technical provisions and its minimum capital requirement on the other hand. This distribution shall be effected taking into account surplus funds as defined in Article 90 but excluding other statutory guarantee schemes.
Amendment 749 #
Proposal for a directive
Article 244 – paragraph 2
Article 244 – paragraph 2
2. Notwithstanding Article 277, Member States shall ensure that liabilities resulting from insurance contracts entered into by the parent undertaking are not treated more or less favourably than liabilities resulting from insurance contracts entered into by any subsidiary which is subject to the rules laid down in Articles 236 to 241. Implementing regulations shall establish procedures under which an orderly and fair distribution of group support over time is to be achieved in the event of insolvency at group level and having regard to the priority of insurance claims set out in Article 277.
Amendment 775 #
Proposal for a directive
Article 251 – paragraph 6 a (new)
Article 251 – paragraph 6 a (new)
6a. Member States shall ensure that when a supervisory authority acts as a group supervisor, it is recognised as doing so in a non-discriminatory manner. Legitimate actions taken as a group supervisor, including but not limited to transfers of capital, shall not, therefore, be regarded, on the basis of that supervisor's national mandate, as contrary to the interests of the Member State or of policyholders in that Member State.
Amendment 788 #
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 and shall 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 in Article 236, and for cooperation with other supervisory authorities. 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 in Articles 211(3), 212(2), and 213(2), Articles 214, 215, and 217, Articles 218(2), 219(2), and 225(2), 236, 248, 249,Articles 248 and 249, Article 251 (3) and (4), and Articles 254, 263 and 264 same issue and for cooperation with other supervisory authorities.
Amendment 813 #
Proposal for a directive
Article 305 a (new)
Article 305 a (new)