May 2016
Solvency II Information Note 8 –
Set 2 of the Solvency II Guidelines
Solvency II Information Note 8 - Set 2 of the Solvency II Guidelines
Background
According to Article 16 of Regulation (EU) No 1094/2010 establishing the European Insurance and
Occupational Pensions Authority (the EIOPA Regulation) EIOPA shall issue guidelines and
recommendations addressed to competent authorities or financial institutions.
The aim of the guidelines and recommendations is to establish consistent, efficient and effective
supervisory practices within the European System of Financial Supervision, and to ensuring the
common, uniform and consistent application of Union law.
On 14 September 2015 EIOPA issued its second set of Guidelines under Directive 2009/138/EC on the
Taking-up and Pursuit of the Business of Insurance and Reinsurance (the Solvency II Directive),
addressed to National Competent Authorities (NCAs), including the Central Bank of Ireland.
Set 2 comprises the following Guidelines:
1. Guidelines on Financial Stability Reporting
2. Guidelines on the
Recovery Period
Extension
of
6. Guidelines
Disclosure
on
Reporting
and
Public
the
3. Guidelines on the Exchange of Information
within Colleges
7. Guidelines on Recognition and Valuation of
Assets and Liabilities other than Technical
Provisions
8. Guidelines on System of Governance
4. Guidelines on the Implementation of the
Long-Term Guarantee Measures
5. Guidelines on the Methods for Determining
the Market Shares for Reporting
9. Guidelines on Own Risk and Solvency
Assessment (ORSA)
10. Guidelines on the supervision of branches
of third country insurance undertakings
Guidelines 1 – 9 were issued in October 2015 and in accordance with Article 16(3) of the EIOPA
Regulation NCAs are to confirm whether they comply or intend to comply with the Guidelines within 2
months of the issuance date. The comply or explain process for Guideline 10 was extended until May
2016.
The Central Bank’s approach to Set 2 of the Solvency II Guidelines
Under Article 16(3) of the EIOPA Regulation NCAs are required to make every effort to comply with
EIOPA Guidelines, and this obligation is also contained in Article 71(2)(b) of the Solvency II Directive.
The Central Bank has updated its response to EIOPA to comply with Guidelines 1 - 9 and will be
incorporating them into its supervisory practice as appropriate. The Central Bank expects insurance
and reinsurance undertakings to comply with the provisions set out in Set 2 of the Guidelines.
Solvency II Information Note 8 - Set 1 Solvency II Guidelines
In relation to Guideline 10, the Central Bank has responded to EIOPA that it intends to comply with the
Guidelines. The rationale for intention to comply is that at present there are no branches of thirdcountry insurance undertakings in the State.
Further information on the Guidelines is available on the EIOPA website.
https://eiopa.europa.eu/regulation-supervision/guidelines
www.centralbank.ie
[email protected]
Bosca PO 559, Sráid an Dáma, Baile Átha Cliath 2, Éire
PO. Box No 559, Dame Street, Dublin 2, Ireland