[ParlTrack]

Proposal for a directive
Recital 2

(2) In order for the European System of Financial Supervisors (ESFS) to work effectively, changes to Union legislation in the field of operation of the three Authorities are necessary. Such changes concern the definition of the scope of certain powers of the ESAs, the integration of certain powers in existing processes established in relevant Union legislation ~~and~~, amendments to ensure a smooth and effective functioning of the ESA in the context of the ESFS and a budget fully funded by the community. Where new tasks are transferred to an ESA its budget should be adjusted as soon as possible in order to enable it to fulfil the new tasks.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Recital 18

(18) In order to ensure that certain technical inputs to the Solvency Capital Requirement (SCR) using the standard formula are provided on a harmonised basis, ~~for instance to allow for harmonised approaches toward the use of ratings,~~ specific tasks should be assigned to EIOPA. The detailed manner for the exercise of such tasks should be further specified in measures to be adopted by delegated act.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Recital 28 a (new)

(28a) In the light of the financial crisis and the pro-cyclical mechanisms that contributed to its origin and aggravated its effect, the Financial Stability Board (FSB), BCBS, and the G20 made recommendations to mitigate the pro- cyclical effects of financial regulation. Those recommendations have direct relevance to insurance and reinsurance undertakings as important components of the financial system.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Recital 28 b (new)

(28b) It is appropriate to ensure that Solvency Capital Requirements take account of the macro-financial environment in which insurance and reinsurance undertakings operate. Such undertakings should therefore be required to hold a counter-cyclical capital buffer which would be built up when asset value appreciation in financial markets is judged to be associated with a build-up of system-wide risk, and drawn down during stressed periods. The counter-cyclical capital buffer should therefore vary over time in a way that reflects potentially unstable trends or bubbles in financial markets, and could be zero. This would help to reduce the probability of breaches of the Solvency Capital Requirement without recourse to temporary ex-post adjustments to the input parameters to market consistent valuation.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Recital 28 c (new)

(28c) In order to achieve coherent application and to assure macro- prudential oversight across the Union, it is appropriate that the European Systemic Risk Board (ESRB) develops principles tailored for the Union economy and is responsible to monitor the application of the counter-cyclical buffer.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Recital 28 d (new)

(28d) The financial crisis highlighted that financial institutions massively underestimated the level of counterparty credit risk associated with over-the- counter (OTC) derivatives. This prompted the G20, in September 2009, to call for more OTC derivatives to be cleared through a Central Counterparty (CCP). Furthermore, they asked to subject those OTC derivatives that could not be cleared centrally to higher capital requirements in order to reflect properly the higher risks associated with them.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point -1 (new)

Directive 2009/138/EC
Article 13 – point 32 a (new)

(-1) In Article 13, the following point is inserted: ‘(32a) ‘authorised central counterparty’ means a central counterparty offering clearing services for derivative instruments authorised under Regulation (EU) No .../2011 [EMIR];’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 2 – point a

Directive 2009/138/EC
Article 31 – paragraph 4

4. ~~The Commission shall adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, relating to paragraph 2~~In order to ensure uniform conditions of application of paragraph 2 of this Article, EIOPA shall develop draft implementing technical standards to specify~~ing~~ the key aspects on which aggregate statistical data are to be disclosed, and to determine the format, structure, contents list and publication date of the disclosures provided for in this Article. EIOPA shall submit those draft implementing technical standards to the Commission by 1 July 2012. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 4 – point -a (new)

Directive 2009/138/EC
Article 35 – paragraph 2 – point a – point i

(-a) In paragraph 2(a), point (i) is replaced by the following: ‘(i) at predefined periods, where the scale and complexity of the risks inherent in the business of an insurance undertaking is sufficiently low and where it can be clearly demonstrated that the burden on the undertaking outweighs the benefits of the information, EIOPA shall limit regular reporting by small and medium- sized enterprises to information that changes significantly in the course of the year provided that a full reporting is done at least once a year.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 4 – point -ab (new)

Directive 2009/138/EC
Article 35 – paragraph 2 – subparagraph 1 a (new)

(-ab) In paragraph 2, the following subparagraph is added: ‘When requiring on a regular basis a full list of assets on an item-by-item basis from insurance undertakings, Member States may exempt small insurance undertakings from the regular reporting obligation on an item-by-item basis, where it can be clearly demonstrated that the burden on the undertaking outweighs the benefits of the information.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 4 – point a

Directive 2009/138/EC
Article 35 – paragraph 6

6. ~~The Commission shall adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, specify~~In order to ensure consistent harmonisation in relation to this Article, EIOPA shall develop draft regulatory technical standards to specify the information, points ing t~~he informa~~ime and conditions for possible exemptions referred to in paragraphs 1 to 4~~, with a view to ensuring to the appropriate extent convergence of supervisory reporting~~. EIOPA shall submit those draft regulatory technical standards to the Commission. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 7

Directive 2009/138/EC
Article 50 – paragraph 1 – introductory part

1. ~~The Commission~~EIOPA shall adevelopt d~~elegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c,~~raft regulatory technical standards to further specify the following:

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 7

Directive 2009/138/EC
Article 50 – paragraph 1 a (new)

1a. EIOPA shall submit those draft regulatory technical standards to the Commission for adoption. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 7

Directive 2009/138/EC
Article 50 – paragraph 2

2. Where necessary to ensure appropriate convergence of the assessment referred to in ~~point (a) of~~ Article 45(1), ~~the Commission may adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, to further specify the elements of that assessment~~EIOPA may develop draft regulatory technical standards, to further specify the elements of that assessment. EIOPA shall submit those draft implementing technical standards to the Commission. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 11 a (new)

Directive 2009/138/EC
Article 65

(11a) Article 65 is replaced by the following: ‘Article 65 Exchange of information between supervisory authorities of Member States Article 64 shall not preclude the exchange of information between supervisory authorities of different Member States or between supervisory authorities and EIOPA. Such information shall be subject to the obligation of professional secrecy laid down in Article 64.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 14 – point -a (new)

Directive 2009/138/EC
Article 75 – paragraph 1 – subparagraph 2 a (new)

(-a) in paragraph 1, the following subparagraph is added: ‘Where for a class of assets or liabilities the valuation referred to in point (a) or (b) could lead to pro-cyclical effects, the values of those assets or liabilities shall include appropriate prudential margins to mitigate pro-cyclical effects.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 14 – point a

Directive 2009/138/EC
Article 75 – paragraph 2

2. ~~The Commission shall adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, to set out the methods and assumptions to be used in~~In order to ensure consistent harmonisation in relation to valuation of assets and liabilities, EIOPA shall develop draft regulatory technical standards to specify: (a) methods and assumptions to be used in the valuation of assets and liabilities as laid down in paragraph 1 including the classes of assets and liabilities referred to in the third subparagraph; (b) international accounting standards as endorsed by the Commission in accordance with Regulation (EC) No 1606/2002 that are consistent with the valuation approach of assets and liabilities as laid down in paragraph 1; (c) valuation approaches where quoted market prices are either not available or not consistent with the valuation approach of assets and liabilities as laid down in paragraph 1; (d) alternative valuation methods to be used where international accounting standards, as endorsed by the Commission in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, are either temporarily or permanently not consistent with the valuation approach of assets and liabilities as laid down in paragraph 1. EIOPA shall submit those draft regulatory technical standards to the Commission by 1 March 2012. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 15

Directive 2009/138/EC
Article 77a – paragraph 1

EIOPA shall publish technical information including the relevant risk-free interest rate term structure. Where EIOPA observes an illiquidity premium in the financial markets in periods of stressed liquidity, information relating to the illiquidity premium, including its size shall also be published. EIOPA shall carry out the observation of the illiquidity premium and the derivation of the information on a transparent, objective and reliable basis. Information for all these purposesInformation of this nature shall be derived according to methods and assumptions which may include formulae, or determinations made by EIOPA.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 17 a (new)

Directive 2009/138/EC
Article 94 – paragraph 3

(17a) In Article 94, paragraph 3 is replaced by the following: ‘3. Any ancillary own-fund items which do not fall under paragraphs 1 and 2 shall be classified in Tier 3. Any basic own- fund items which do not fall under paragraphs 1 and 2 shall be excluded from own funds.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 a (new)

Directive 2009/138/EC
Article 100 – paragraph 2

(19a) In Article 100, the second paragraph is replaced by the following ‘The Solvency Capital Requirement shall be calculated in accordance with the standard formula in Subsection 2 as well as, where applicable, using an approved internal model, as set out in Subsection 3. Where an approved internal model is used, the applicable Solvency Capital Requirement, shall be equal to the greater of the Solvency Capital Requirement under the internal model and 80 percent of that calculated using the standard formula.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 b (new)

Directive 2009/138/EC
Article 101 – paragraph 4 –subparagraph 2

(19b) In Article 101(4), the second subparagraph is replaced by the following: ‘Operational risk as referred to in point (f) of the first subparagraph shall include legal risks and model risk, and exclude risks arising from strategic decisions, as well as reputation risks. Model risk shall reflect the potential underestimation of other risks due to errors in model specification and the calibration of model parameters.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 b (new)

Directive 2009/138/EC
Article 101 – paragraph 4a (new)

(19b) In Article 101, the following paragraph is inserted: ‘4a. In order to ensure consistent harmonisation in relation to paragraph 4, EIOPA shall develop draft regulatory technical standards to specify the calculation of an operational risk sub- module for model specification and calibration error of the Solvency Capital Requirement as referred to in paragraph 4. The calculation shall take account of the volume of the operations of the insurance and reinsurance undertakings. EIOPA shall submit those draft regulatory standards to the Commission by 1 March 2012. Power is delegated to the Commission to adopt regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 b (new)

Directive 2009/138/EC
Article 101 – paragraph 5 a (new)

(19b) In Article 101, the following paragraph is added: ‘5a. Member States shall require insurance and reinsurance undertakings to hold eligible own funds in addition to the Solvency Capital Requirement set out in paragraphs 2 to 5 as a countercyclical buffer which can be reduced in periods of stressed financial markets as observed by EIOPA.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 b (new)

Directive 2009/138/EC
Article 101 – paragraph 7 (new)

(19b) In Article 101, the following new paragraph is added: ‘5b. In order to ensure consistent harmonisation in relation to paragraph 5a, EIOPA, in consultation with ESRB shall develop draft regulatory technical standards to specify the calculation of the countercyclical buffer and criteria for the determination of stressed financial markets as referred to in paragraph 5a. EIOPA shall submit those draft regulatory standards to the Commission by 1 March 2012. Power is delegated to the Commission to adopt regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation No 1094/2010.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 19 c (new)

Directive 2009/138/EC
Article 105 – paragraph 6 – subparagraph 2 a (new)

(19c) In Article 105(6), the following subparagraph is inserted after the second subparagraph: ‘Where a derivative contract is cleared through an authorised central counterparty the corresponding counterparty default risk capital requirement shall be lower than if the contract was not cleared in this manner.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 1 – introductory part

1. ~~For the purposes of evaluating risk mitigation techniques as referred to in Article 101(5) facilitating the~~An external credit assessment may be used to calculat~~ion of~~e the market risk module referred to in Article 105(5) and~~, where appropriate, facilitating~~ the counterparty default risk module referred to in Article 105(6), ~~EIOPA shall~~subject to the following conditions:

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

(a) ~~assess the eligibility of external credit assessment institut~~the insurance undertaking has a balance sheet total less than EUR 25 billions and ~~alloc~~demonstrated, th~~eir credit assessments to an objective scale of credit quality steps~~at it is unable to assess the credit risk by any other means and;

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 1 - point b

(b) ~~publish lists of regional governments and local authorities, exposures to whom are to be treated as exposures to central government~~the ECAI is a credit rating agency that has been registered or certified in accordance with Regulation (EC) No 1060/2009, or, if an ECAI is not registered in accordance with Regulation (EC) No 1060/2009, its eligibility has been assessed by the European Supervisory Authorities (ESAs), through the Joint Committee, and subject to the methodological requirements of Title II of Regulation (EC) No 1060/2009;

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 1 – point c

~~(c) specify the equity index referred to in Article 106(2), calculate the symmetric adjustment referred to in Article 106 and publish both sets of information on a regular basis;~~deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 1 – point d

~~(d) specify the adjustments to be made for currencies pegged to the euro in the currency risk sub-module referred to in Article 105(5).~~deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 2

2. For the purpose of facilitating the calculation of the health underwriting risk module referred to in Article 105(4), EIOPA shall calculate and publish standard deviations in relation to specific national legislative measures of Member States which permit the sharing of claims payments in respect of health risk amongst insurance and reinsurance undertakings and which meet specified criteria. Concerning ECAIs the Joint Committee shall: (a) make publicly available a list of eligible ECAIs; (b) verify that individual credit assessments are accessible at equivalent terms at least to all institutions having a legitimate interest in these individual credit assessments; (c) allocate the external credit assessments to an objective scale of credit quality steps.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20 (new)

Directive 2009/138/EC
Article 109a – paragraph 2 a (new)

2a. For the purposes of facilitating the calculation of the market risk module referred to in Article 105(5)(1), EIOPA shall have the following tasks: (a) to publish lists of regional governments and local authorities, exposures to whom are to be treated as exposures to the central government of the jurisdiction in which they are established, provided there is no difference in risk between such exposures due to specific revenue raising powers of the former, and specific institutional arrangements exist, the effect of which is to reduce the risk of default; (b) to specify the adjustments to be made for currencies pegged to the euro in the currency risk sub-module referred to in Article 105(5); and (c) to specify the appropriate equity index referred to in Article 106(2), calculate the symmetric adjustment referred to in Article 106 and publish both sets of information on a monthly basis.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 20

Directive 2009/138/EC
Article 109a – paragraph 2b (new)

2b. EIOPA shall develop draft implementing technical standards to specify the conditions for a categorisation in accordance with paragraph 2a(a) and (b). EIOPA shall submit those draft implementing technical standards to the Commission by [date]. Power is conferred on the Commission to adopt those implementing technical standards in accordance with Article 15 of Regulation (EU) No 1094/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 21

Directive 2009/138/EC
Article 111 – title

~~Delegated acts and implementing act~~Regulatory technical standards

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 21

Directive 2009/138/EC
Article 111 – introductory part

1. ~~The Commission shall adopt delegated acts, in accordance with~~In order to ensure consistent harmonisation in relation to Article 3101a and ~~subject to the conditions of Articles 301b and 301c, providing for the following~~Articles 103 to 109, EIOPA shall develop draft regulatory technical standards to specify:

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 21

Directive 2009/138/EC
Article 111 – paragraph 1 – point f a (new)

(fa) the method to be used when assessing the capital requirement for counterparty default risk in the case of exposures to authorised central counterparties as referred to in Article 105. These parameters shall be set to ensure consistency with the treatment of such exposures in the case of credit institutions and investment firms as required under Directive 2012/xx./EU (CRD IV);

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 21

Directive 2009/138/EC
Article 111 – paragraph 1 – point m

(m) the approach to be used with respect to related undertakings within the meaning of Article 212 in the calculation of the Solvency Capital Requirement, in particular the calculation of the equity risk sub-module referred to in Article 105(5), taking into account the likely reduction in the volatility of the value of those related undertakings arising from the strategic nature of those investments and the influence exercised by the participating undertaking on those related undertakings;deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 21

Directive 2009/138/EC
Article 111 – paragraph 1 – point q

(q) the detailed criteria that the national legislative measures arrangements shall meet, and the requirements for the calculation of the standard deviation for the purpose of facilitating the calculation of the health underwriting risk module referred to in Article 109a(2)deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 25 a (new)

Directive 2009/139/EC
Article 129 – paragraph 4 – subparagraph 1 a (new)

(25a) In Article 129(4),the following subparagraph is inserted after the first subparagraph: ‘For the purposes of calculating the limits referred to in paragraph 3, undertakings shall not be required to calculate the Solvency Capital Requirement on a quarterly basis.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 32

Directive 2009/138/EC
Article 155 – paragraph 3 – subparagraph 1 a

In addition, the supervisory authority of the host Member State or the supervisory authority of the host Member State may refer the matter to EIOPA and request its assistance in accordance with Article 19 ~~of Regulation …/2010 [EIOPA]~~, paragraphs 1 to 4 and 6, of Regulation (EU) No 1094/2010. In that case, EIOPA may act in accordance with the powers conferred on it by that Aarticle.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 33

In addition, the supervisory authority of the host Member State or the supervisory authority of the host Member State may refer the matter to EIOPA and request its assistance in accordance with Article 19 ~~of Regulation …/2010 [EIOPA]~~, paragraphs 1 to 4 and 6, of Regulation (EU) No 1094/2010. In that case, EIOPA may act in accordance with the powers conferred on it by that article.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 38

Directive 2009/138/EC
Article 216 – paragraph 7

7. ~~The Commission may ad~~EIOPA may developt d~~elegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, specifying the circumstances under which the decision referred to in paragraph 1 can be made~~raft regulatory technical standards, specifying the circumstances under which the decision referred to in paragraph 1 can be made. EIOPA shall submit those draft regulatory technical standards to the Commission. Power is delegated to the Commission to adopt those regulatory technical standards in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 42 a (new)

Directive 2009/138/EC
Article 230 – paragraph 2 – subparagraph 1

(42 a) In Article 230(2), the first subparagraph is replaced by the following: ‘2. The Solvency Capital Requirement at group level based on consolidated data (consolidated group Solvency Capital Requirement) shall be calculated on the basis of the standard formula and, where appropriate, an approved internal model, in the manner described in Article 100 and consistent with the general principles contained in Title I, Chapter VI, Section 4, Subsections 1 and 2 and Title I, Chapter VI, Section 4, Subsections 1 and 3, respectively.’

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 62 – point a

Directive 2009/138/EC
Article 260 – 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 247(2) were to apply (hereinafter the ‘acting group supervisor’), at the request of the parent undertaking or of any of the insurance and reinsurance undertakings authorised in the Union or on its own initiative, unless the Commission had concluded previously in respect of the equivalence of the third country concerned. ~~In so doing, that supervisory authority shall consult the ot~~The acting group supervisor shall cooperate with EIOPA in accordance with Article 33(2) of Regulation (EU) No 1094/2010. In so doing, that acting group supervisor shall, assisted by EIOPA, consult the other supervisory authorities concerned, before taking a decision on equivalence. This decision shall be taken in accordance with the criteria adopted in accordance with paragraph 2. The acting group supervisor shall not take any decision in relation to a third-country that is contradicting any decision taken vis-à-vis that third-country previously. Where supervisory authorities ~~concerned and EIOPA, before taking a decision.~~ disagree with the decision taken in accordance with subparagraph 2, they may refer the matter to EIOPA and request its assistance in accordance with Article 19, paragraphs 1 to 3 and 6, of Regulation (EU) No 1094/2010 within 3 months after notification of the decision by the acting group supervisor. In that case, EIOPA may act in accordance with the powers conferred on it by that Article.

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 62 – point c

Directive 2009/138/EC
Article 260 – paragraph 4

(c) the following paragraph 4 is added: ‘4. By way of derogation from Article 261(1), the first paragraph of Article 262(1) and the second paragraph of Article 263, Member States may, for a transitional period, rely on the group supervision exercised by the third-country supervisory authorities. The transitional period shall last for a maximum of 5 years from the date referred to in the first sub- paragraph of Article 309(1).This derogation shall only apply where the Commission has made a decision in accordance with paragraph 5 that specified conditions have been met by the third country.’deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 62 – point d

Directive 2009/138
Article 260 – paragraph 5

(d) the following paragraph 5 is added: ‘5. The Commission may adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, specifying in relation to paragraph 4 the length of the transitional period which may be shorter than the maximum of 5 years and the conditions which are to be met by the third country. Those conditions shall cover commitments given by the supervisory authorities, their convergence to an equivalent regime over a set period of time, the existing or intended content of the regime, and matters of cooperation, exchange of information and professional secrecy obligations.’deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 62 – point e

Directive 2009/138/EC
Article 260 – paragraph 6

(e) the following paragraph 6 is added: ‘6. The Commission may adopt, a decision in respect of prudential regimes of third countries referred to in paragraph 4 that the conditions set out in paragraph 4 and the delegated act have been met by the third country. Those decisions shall be adopted after consultation of the European Insurance and Occupational Pensions Committee and in accordance with the regulatory procedure referred to in Article 301(2). The decisions shall be reviewed regularly.’deleted

2011/09/23
Committee: ECON

Sven GIEGOLD

Proposal for a directive
Article 2 – point 71

Directive 2009/138/EC
Article 308b

The Commission may adopt delegated acts, in accordance with Article 301a and subject to the conditions of Articles 301b and 301c, regarding the following : (a) with regard to Article 308a(1), specifying the length of the transitional period which may be shorter than the maximum of 3 years, specifying any phasing of the transitional period, and specifying the transitional requirements as to the systems and structures undertakings shall have in place to comply with information required to be provided for supervisory purposes and requiring that insurance and reinsurance undertakings comply at least with the laws, regulations and administrative provisions related to production of accounts and periodic submission of returns which are adopted pursuant to Article 13 Directive of 2002/83/EC, Article 11 of Directive 84/641/EC and Article 17 of Directive 2005/68/EC. (b) with regard to Article 308a(2), specifying the length of the transitional period which may be shorter than 10 years, specifying any phasing of the transitional period, specifying a requirement to take the assumptions underlying a transitional Solvency Capital Requirement referred to in Article 308b(8) rather than the Solvency Capital Requirement into account when concluding whether the conditions for imposing a capital add-on under Article 37(1)(a) are met and specifying the calculation of the capital add-on by reference to the calibration and confidence level attributes of that transitional Solvency Capital requirement rather than those of the standard formula Solvency Capital Requirement; (c) with regard to Articles 308a(3), the length of the transitional period which may be shorter than the maximum of 3 years, the phasing of the transitional period and the transitional requirements as to the system of governance and the extent to which the systems, functions, and requirements referred to in Articles 41 to 49 to be complied with by insurance and reinsurance undertakings during the transitional period and requiring that insurance and reinsurance undertakings comply at least with the laws, regulations and administrative provisions requiring sound administrative procedures and internal control which are adopted pursuant to Article 10 of Directive 2002/83/EC, Article 9 of Directive 84/641/EC and Article 15 of Directive 2005/68/EC. (d) with regard to Article 308a(4), the length of the transitional period which may be shorter than the maximum of 3 years, any phasing of the transitional period, and any transitional requirements as to the content and timing of the information which must be publicly disclosed by insurance and reinsurance undertakings and requiring that insurance and reinsurance undertakings be at least required to disclose a report containing a high level summary of the information listed in Article 51(1). (e) with regard to Article 308a(5) the length of the transitional period which may be shorter than the maximum of 10 years, any phasing of the transitional period, any specification of the assets and liabilities which shall be subject to transitional requirements as to valuation and the transitional requirements as to the methods and assumptions to be used in the valuation of the specified assets and liabilities and requiring that insurance and reinsurance undertakings comply at least with the Member State’s laws, regulations and administrative provisions for valuation of such assets and liabilities which were applicable on 31 December 2012; (f) with regard to Article 308a(6) , the length of the transitional period which may be shorter than the maximum of 10 years, the phasing of the transitional period and the transitional requirements as to the methodologies and assumptions to be used in the calculation of technical provisions and which will apply during the transitional period and requiring that insurance and reinsurance undertakings comply at least with the laws, regulations and administrative provisions for the establishment of technical provisions which are adopted pursuant to Article 20 of Directive 2002/83/EC, Article 15 of Directive 73/239/EEC and Article 32 of Directive 2005/68/EC; (g) with regard to Articles 308a(7), the length of the transitional period which may be shorter than the maximum of 10 years, the phasing of the transitional period, the specification of the own fund items subject to the transitional, and the transitional requirements as to the classification of own fund items, which will apply to those specified own funds items and requiring that during the transitional period insurance and reinsurance undertakings comply at least with the laws, regulations and administrative provisions adopted pursuant to Article 27 of Directive 2002/83/EC, Article 16 of Directive 73/239/EEC and Article 36 of Directive 2005/68/EC in respect of those own fund items; (h) with regard to Articles 308a(8), the length of the transitional period which may be shorter than the maximum of 10 years, any phasing of the transitional period and any transitional requirements as to the calculation and use of a transitional Solvency Capital Requirement. The calculation of the transitional Solvency Capital requirement may include modifications to the stresses, scenarios, correlation coefficients and parameters of the Solvency Capital Requirement standard formula that would otherwise apply. The delegated act shall also require that insurance and reinsurance undertakings comply with a transitional Solvency Capital Requirement that is no higher than the Solvency Capital Requirement and no lower than the sum of the Minimum Capital Requirement and fifty per cent of the difference between the Solvency Capital Requirement and the Minimum Capital Requirement; (i) with regard to Article 308a(9), changes which relate to the choice of calculation method and general principles in calculating group solvency set out in Article 220 to 229 and Articles 230 to 233 and Article 235 in relation to the methods for calculating group solvency. The delegated acts may also set out the changes which relate to the calculation of group solvency under supervision at group level as referred to in Article 213(2)(c), where the equivalent supervision is absent as referred to in Article 262. Those changes to the calculation of group own funds and the group solvency capital requirement shall be consequential to any transitional requirements on own funds classification and the Solvency Capital Requirement which apply at the level of individual insurance or reinsurance undertakings during the transitional period as referred to in Article 308a(7) and Article 308a(8) The delegated act shall require that insurance and reinsurance undertakings ensure that eligible own funds, taking account of the transitional provisions in Article 308a(7), are available in the group. Those eligible own funds shall be at least equal to a group Solvency Capital Requirement which shall be calculated by reference to the calculation method of the transitional Solvency Capital Requirement referred to in Article 308a(8) or the amount of the transitional Solvency Capital Requirement; (j) with regard to Article 254(2)), changes which relate to the information to be reported to the authorities responsible for exercising group supervision which are consequential to the requirements for supervisory reporting at the level of individual insurance or reinsurance undertakings which apply during the transitional period referred to in Article 308a(1)) (k) with regard to Article 256(1) changes which relate to the content and timing of the information which must be publicly disclosed and which are consequential to the requirements for public disclosure at the level of individual insurance or reinsurance undertakings which apply during the transitional period as referred to in Article 308a(4).’ Delegated Acts Transitional periods: 1. Member States and reinsurance undertakings or insurance and reinsurance groups with a balance sheet total less than EUR 25 billion, which do not comply with the Solvency Capital Requirement on the date referred to in Article 310 a period not exceeding two years in which to do so provided that such undertakings or groups have, in accordance with Article 138(2) and Article 142, submitted for the approval of the supervisory authority the measures which they propose to take for such purpose. 2. Member States may allow insurance and reinsurance undertakings which do not comply fully with the requirements to have appropriate systems and structures in place in accordance with Article 35(5) and Article 55(1) on the date referred to in Article 310, a period not exceeding two years in which to do so. 3. During that period, Member States may allow insurance and reinsurance undertakings which do not comply fully with the requirements to disclose publicly the information referred to in Articles 51 and 53 to 55, to disclose only the information which implemented systems and structures are able to provide. 4. Member States may allow insurance and reinsurance groups which do not comply fully with the requirements to have appropriate systems and structures in place in accordance with Articles 254 on the date referred to in Article 310 a period not exceeding two years in which to do so. 5. During that period, Member States may allow insurance and reinsurance groups which do not comply fully with the requirements to disclose publicly the information referred to in Article 256, to disclose only the information which implemented systems and structures are able to provide. 6. Basic own-funds items that were issued prior to the date referred to in Article 309(1) and that meet the following criteria shall, for the purposes of Articles 94(1) and 230, be included in Tier 1 basic own funds for up to 10 years after the date referred to in Article 310: (a) the item ranks after the claims of all policyholders and beneficiaries and non- subordinated creditors; (b) the item is only repayable or redeemable at the option of the insurance or reinsurance undertaking and may not include limited incentives to repay or redeem that item before 10 years after the issue date of that item. The repayment or redemption of that item is subject to prior supervisory approval; (c) the item is free form encumbrances and shall not be connected with any other transaction, which when considered with that item, could result in that item not satisfying the requirements set out in the first paragraph of Article 94(2); (d) the item shall be fully paid in, undated and absorb losses on a going-concern basis; (e) the item shall provide for the cancellation or deferral of the payment of interest or dividends in relation to that item in the event of financial stress. 7. Basic own-funds items that were issued prior to the date referred to in Article 309(1) and that meet the following criteria shall, for the purposes of Articles 94(2) and 230, be included in Tier 2 basic own funds for up to 10 years after the date referred to in Article 310: (a) the item ranks after the claims of all policyholders and beneficiaries and non- subordinated creditors; (b) the item is undated or has an original maturity of at least 5 years. The maturity date shall be deemed to be the first contractual opportunity to repay or redeem that item. The exchange or conversion of that item into another basic own-fund item of at least the same quality shall not be deemed to be a repayment or redemption. The exchange or conversion is subject to the approval of the supervisory authority; (c) the item is only repayable or redeemable at the option of the insurance or reinsurance undertaking and may not include limited incentives to repay or redeem that item before 10 years after the issue date of that item. The repayment or redemption of that item is subject to prior supervisory approval; (d) the item is free form encumbrances and shall not be connected with any other transaction, which when considered with that item, could result in that item not satisfying the requirements set out in the first paragraph of Article 94(2); (e) the item shall be fully paid in. 8. With respect to insurance and reinsurance undertakings investing in tradable securities or other financial instruments based on repackaged loans that were issued before 1 January 2011, the requirements referred to in Article 135(2)(1a) shall apply from 31 December 2014, but only in circumstances where new underlying exposures are added or substituted after 31 December 2014. 9. Third countries applying legislation which is recognised as equivalent to this Directive may apply transitional measures equivalent to those laid down in this Article.

2011/09/23
Committee: ECON

48 Amendments of Sven GIEGOLD related to 2011/0006(COD)

ParlTrack - 2011-2024