Understanding Solvency II, What is Different After December 2013

Understanding Solvency II, What is Different After December 2013

by George Lekatis
     
 

We will start with the new directive (Directive 2013/58/EU of 11 December 2013)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) and Article 62 thereof,
Having regard to the proposal from the European Commission,
Acting in accordance

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Overview

We will start with the new directive (Directive 2013/58/EU of 11 December 2013)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) and Article 62 thereof,
Having regard to the proposal from the European Commission,
Acting in accordance with the ordinary legislative procedure,
Whereas:

(1) Directive 2009/138/EC of the European Parliament and of the Council provides a modern, risk-based system for the regulation and supervision of insurance and reinsurance undertakings of the Union.

That system is essential in order to ensure a safe and solid insurance sector that can provide sustainable insurance products and support the real economy by encouraging long- term investments and additional stability.

(2) Directive 2011/89/EU of the European Parliament and of the Council makes certain amendments to Articles 212 to 262 of Directive 2009/138/EC, which are to be applicable from 10 June 2013.

(3) Directive 2012/23/EU of the European Parliament and of the Council amends Directive 2009/138/EC by post? poning the date for transposition from 31 October 2012 to 30 June 2013, the date of application from 1 November 2012 to 1 January 2014 and the date of repeal of the existing insurance and reinsurance Directives (collectively referred to as 'Solvency I') from 1 November 2012 to 1 January 2014.

(4) On 19 January 2011, the Commission adopted a proposal (the 'Omnibus II proposal') to amend, inter alia, Directive 2009/138/EC in order to take into account the new supervisory architecture for insurance, namely the setting-up of the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (EIOPA).

The Omnibus II proposal also includes provisions to postpone the date for trans? position and the date of application of Directive 2009/138/EC, and the date of repeal of Solvency I, and serves as a means to adapt Directive 2009/138/EC to the entry into force of the Treaty on the Functioning of the European Union by converting the provisions empowering the Commission to adopt implementing measures into provisions empowering the Commission to adopt delegated and implementing acts.

(5) Given the complexity of the Omnibus II proposal, there is a risk that it will not have entered into force before the date for transposition and the date of application of Directive 2009/138/EC.

Leaving those dates unchanged would result in Directive 2009/138/EC being imple? mented before the entry into force of the transitional rules and of relevant adaptations, including further clari? fication of delegated and implementing act empower? ments, provided for by the Omnibus II proposal.

(6) In order to avoid overly burdensome legislative obligations for Member States under Directive 2009/138/EC and later under the new supervisory archi? tecture envisaged by the Omnibus II proposal, it is therefore appropriate to postpone the date for trans? position and the date of application of Directive 2009/138/EC, allowing supervisors and insurance and reinsurance undertakings sufficient time to prepare for the application of that new architecture.

(7) It is evident from the chronological order of events that the postponed date for transposition and date of application of Directive 2009/138/EC should also apply to the amendments thereto which were made by Directive 2011/89/EC.

(8) For reasons of legal certainty, the date of repeal of Solvency I should be postponed accordingly.

(9) Given the very short period of time before the relevant dates laid down in Directive 2009/138/EC, this Directive should enter into force without delay.

(10) Consequently, it is justified to apply the exception for urgent cases provided for in Article 4 of Protocol No 1 on the role of national parliaments in the European Union in this case as regards the transmission to national parliaments of the proposal for this Directive ...

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Product Details

ISBN-13:
2940045547987
Publisher:
George Lekatis
Publication date:
12/28/2013
Series:
Understanding Solvency II , #10
Sold by:
Smashwords
Format:
NOOK Book
File size:
2 MB

Meet the Author

George Lekatis is the General Manager of Compliance LLC, a leading provider of risk and compliance training and executive coaching in 36 countries.George has more than 17,000 hours experience as a professional speaker and seminar leader. He has worked for more than 18 years as a management consultant and educator and has demonstrated exceptional presentation and communication skills.George is the president of the Basel ii Compliance Professionals Association (BCPA, basel-ii-association.com), the largest association of Basel ii professionals in the world, and the Basel iii Compliance Professionals Association (BiiiCPA, basel-iii-association.com), the largest association of Basel iii professionals in the world.George is also president of the Sarbanes Oxley Compliance Professionals Association (SOXCPA, sarbanes-oxley-association.com), the largest Association of Sarbanes Oxley professionals in the worldGeorge is an expert witness, qualified to investigate and testify about risk and compliance management standards, policies, procedures, best practices, due care and due diligence.

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