Six ITS consultations launched as Solvency II preparations gather pace
On April 2, 2014, the European Insurance and Occupational Pensions Authority (EIOPA) issued the first set of Solvency II Implementing Technical Standards (ITS) for consultation. ITS are regulatory tools to assist firms and supervisors’ preparations for the Solvency II approval processes, due to start on April 1, 2015. The Omnibus II Directive grants power to EIOPA to draft these standards.
The consultation papers cover proposed ITS on:
- internal models approval processes;
- procedures to be used for granting supervisory approval for the use of ancillary own-fund items;
- the process to reach a joint decision for group internal models;
- procedures to be followed for the approval of the application of a matching adjustment;
- special purpose vehicles; and
- the supervisory approval procedure to use undertaking-specific parameters.
Responses to all six consultations should be submitted by June 30 using the template provided. EIOPA is expected to submit the final draft ITS for endorsement by the European Commission by October 31, 2014. The second set of ITS is likely to be consulted on late this year or early in 2015. Meanwhile, the Commission’s Delegated Acts containing detailed implementing measures are expected to be made public in the summer.
Firms should review their preparations for Solvency II in light of the ITS consultations. The timetable leading up to implementation on January 1, 2016 is challenging and firms should have a clear understanding of the key dates on the horizon and ensure their preparations for the new regime are well advanced.
View EIOPA consultation papers, 2 April 2014