The European Commission has identified Solvency II as “one area where significant improvements could be achieved“, for example, by “simplification” and better “technical consistency“. So, when it published its Call for Advice in July 2016, the Commission asked EIOPA to look at the “proportionate and simplified application of the requirements, and removal of unintended inconsistencies“, within the standard formula SCR, and between Solvency II and the CRR / CRD and EMIR. The Commission also said that it would look at the possible “removal of unjustified constraints to financing“, especially when it comes to long-term investment, and that it might ask EIOPA for a technical advice on these issues later on.
EIOPA has just published its proposed timetable for responding to the Call for Advice:
- Late 2016 / early 2017: (a) publish a call for information; and (b) consult on a draft discussion paper on the Commission’s call for advice;
- July 2017 / February 2018: (a) analyze the annual reporting data that becomes available in July 2017; and (b) consult stakeholders;
- End October 2017: provide late draft technical advice on those things that do not depend on an analysis of the annual reporting data; and
- February 2018: provide a final technical advice, which includes (a) a finalized version of the October 2017 advice (if necessary); and (b) advice on the things that do depend on a data analysis.
The Commission’s own work on financing constraints implies that we can expect this timetable to be supplemented before too long. It may also suggest that an SCR review by the end of 2018 is ambitious. We’ll see.
More to follow …