Regulatory Radar - January 2016
Newsletter on regulation for the financial services industry
Monthly newsletter providing an overview of the key regulatory changes impacting the financial services industry
Highlights of this issue
Solvency II regime enters into force
On 1 January 2016, the Solvency II regime should enter into force. As the Belgian law, transposing Solvency II, however has not yet been published, the National Bank of Belgium (NBB) issued the following provisional circulars on 8 January 2016:
- Provisional circular concerning guidelines for the execution of the of long-term guarantee measures (NL/FR)
- Provisional circular concerning the accounting and the appreciation of assets and liabilities other than technical provisions (NL/FR)
- Provisional circular concerning guidelines for reporting for purposes of financial stability (NL/FR)
- Provisional circular concerning guidelines for reporting and publication (NL/FR)
- Provisional circular concerning guidelines for the Own Risk and Solvency Assessment (ORSA) (NL/FR)
These circulars clarify the guidelines issued by the European Insurance and Occupational Pensions Authority (EIOPA).
The circulars have a provisional character until the publication of the Belgian law transposing the Solvency II regime. A complete list of all provisional circulars can be found on the NBB’s website (NL/FR).
Next to this, the NBB issued on 5 January 2016 a circular concerning additional reporting of statistics obtained using the standard formula for companies with an approved (partial) internal model (NL/FR). This circular states that, until 31 December 2017, insurance companies, including those with an approved (partial) internal model, should rely on the capital requirements calculated using the standard formula for Solvency Capital Requirement (SCR) when calculating the Minimum Capital Requirements (MCR).
Furthermore, in its communication of 4 January 2016 (NL/FR), the NBB stresses the importance of the quality of data concerning the reporting of the list of assets (so called element S.06.02). In the preparatory phase of Solvency II, the NBB observed that the reporting of the list of assets was insufficient for some insurance companies and groups. To guarantee a sufficient quality of this list, the NBB reminds the insurance sector of the detailed requirements of the log-file list of assets. The log-file list of assets for the Solvency II preparatory phase reporting and for the Solvency II reporting were added in annex to this communication.