13 Amendments of Elisabetta GUALMINI related to 2021/0295(COD)
Amendment 210 #
Proposal for a directive
Recital 3
Recital 3
(3) As underlined in the Commission’s Communication of 24 September 2020 ‘A Capital Markets Union for people and businesses’18 , incentivising institutional investors, in particular insurers, to make more long-term investments will be instrumental in supporting re-equitisation in the corporate sector. To facilitate insurers’ contribution to the financing of the economic recovery of the Union, the prudential framework should be adjusted to better take into account the long-term nature of the insurance business. In particular, when calculating the Solvency Capital Requirement under the standard formula, the possibility to use a more favourable standard parameter for equity investments which are held with a long- term perspective should be facilitated, provided that insurance and reinsurance undertakings comply with sound and robust criteria, that preserve policyholder protection and financial stability. Such criteria should aim to ensure that insurance and reinsurance undertakings are able to avoid forced selling of equities intended to be held for the long term, including under stressed market conditions, irrespective of the line of business and the duration of the insurance obligations in order to preserve the level playing field throughout the Union. __________________ 18 COM/2050/590 final
Amendment 261 #
Proposal for a directive
Recital 37
Recital 37
(37) Directive 2009/138/EC provides for a country component in the volatility adjustment that aims to ensure that exaggerations of bond spreads in a specific country are mitigated. However, the activation of the country component is based on an absolute threshold and a relative threshold with respect to the risk- adjusted spread of the country, which can lead to cliff-edge effects and therefore increase the volatility of own funds of insurance and reinsurance undertakings. In order to ensure that exaggerations of bond spreads in a specific Member State whose currency is the euro are mitigated effectively, the country component should be replaced by a macro component which is to be calculated based on the differences between the risk adjusted spread for the euro and the risk adjusted spread for the country. In order to avoid cliff-edge effects, the calculation should avoid discontinuities with respect to the input parameters. Moreover, the methodology of the risk-correction should aim at ensuring the counter-cyclicality function of the Volatility Adjustment.
Amendment 262 #
Proposal for a directive
Recital 37 a (new)
Recital 37 a (new)
(37 a) The Review of Directive 2009/138/EC should aim at granting the highest level of protection towards policy holders all over the Union. In the framework of its review, measurement methodologies and tools on illiquidity should be refrained from being used, when their design could have unintended consequences, being detrimental for the policy holders protection, or when they are not based on valid empirical analysis and data.
Amendment 265 #
Proposal for a directive
Recital 40
Recital 40
(40) For the purposes of calculating their own funds under Regulation (EU) No 575/2013 of the European Parliament and of the Council23 , institutions which belong to financial conglomerates that are subject to Directive 2002/87/EC of the European Parliament and of the Council24 may be permitted not to deduct their significant investments in insurance or reinsurance undertakings, provided that certain criteria are met. There is a need to ensure that prudential rules applicable to insurance or reinsurance undertakings and credit institutions allow for an appropriate level- playing field between banking-led and insurance-led financial groups. Therefore, insurance or reinsurance undertakings should also be permitted not to deduct from their eligible own funds participations in credit and financial institutions, subject to similar conditions and to apply a capital requirement factor based on the market risk module, calculated in accordance with Directive 2009/138/EC, to the participations in credit and financial institutions. In particular, either group supervision in accordance with Directive 2009/138/EC or supplementary supervision in accordance with Directive 2002/87/EC should apply to a group encompassing both the insurance or reinsurance undertaking and the related institution. In addition, the institution should be an equity investment of strategic nature for the insurance or reinsurance undertaking and supervisory authorities should be satisfied as to the level of integrated management, risk management and internal controls regarding the entities in the scope of group supervision or supplementary supervision. The same prudential treatment based on the market risk module should also be permitted if the participations entail a risk exposure similar to investments in financial instruments issued by unrelated entities if specific condition in terms of level of shareholdings and liquidity of the investment are met. __________________ 23 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 24 Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council (OJ L 35, 11.2.2003, p. 1).
Amendment 283 #
Proposal for a directive
Recital 63 a (new)
Recital 63 a (new)
(63 a) Before excluding the ultimate parent undertaking from group supervision, the group supervisor should consult EIOPA, and where applicable, other supervisory authorities concerned, and should assess the impact of exercising group supervision at the level of an intermediate participating undertaking on the solvency position of the group. In this assessment on the features of the group, the group supervisor should consider the qualitative and quantitative risks, including those stemming from intragroup transactions, and the risks that the ultimate parent undertaking poses or may pose to the whole group. Any supervisory decision to exclude the top holding from scope of group supervision and to apply the group supervision at an intermediate level should carefully consider any potential impact on the solvency position of the group and fully overview of the risks the group faces or may face.
Amendment 607 #
Proposal for a directive
Article 1 – paragraph 1 – point 40 – point a – point iii
Article 1 – paragraph 1 – point 40 – point a – point iii
Directive 2009/138/EC
Article 86 – paragraph 1 – point i – point iii
Article 86 – paragraph 1 – point i – point iii
(iii) for each relevant asset class, the percentage of the long-term average spread that represents the portion attributable to a realistic assessment of expected losses or unexpected credit or other risks of the assets as referred to in Article 77d(3), and that is consistent with the definition of the fundamental spread referred to in Article 77c(2);
Amendment 608 #
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point a
Article 1 – paragraph 1 – point 41 – point a
Directive 2009/138/EC
Article 92 – paragraph 1a – subparagraph 1
Article 92 – paragraph 1a – subparagraph 1
1a. The Commission shall adopt delegated acts in accordance with Article 301a specifying the treatment of participations, within the meaning of Article 212(2), third subparagraph, in financial and credit institutions with respect to the determination of own funds, including: (i) approaches to deductions from the basic own funds of an insurance or reinsurance undertaking of material participations in credit and financial institutions. ; (ii) the market risk module to be applied by insurance and reinsurance undertakings to the participations in credit and financial institutions not deducted pursuant to this Article.
Amendment 613 #
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point a
Article 1 – paragraph 1 – point 41 – point a
Directive 2009/138/EC
Article 92 – paragraph 1a – subparagraph 2 – point (i)
Article 92 – paragraph 1a – subparagraph 2 – point (i)
(i) the credit or financial institution and the insurance or reinsurance undertaking belong to the same group, as defined in Article 212, to which group supervision applies in accordance with Article 213(2), points (a), (b) and (c), and the related credit or financial institution is not subject to the deduction referred to in Article 228(65);
Amendment 614 #
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point a a (new)
Article 1 – paragraph 1 – point 41 – point a a (new)
Directive 2009/138/EC
Article 92 – paragraph 1b (new)
Article 92 – paragraph 1b (new)
(aa) the following paragraph is inserted: ‘1b. Notwithstanding paragraph 1a, the insurance and reinsurance undertaking shall be allowed not to deduct its participation in the credit or financial institution, provided that all the following conditions are met: (i) the participation represents less than 20% of the capital or voting rights of the credit or financial institution; (ii) the credit or financial institution is an entity whose transferable securities are admitted to trading on a regulated market.’
Amendment 637 #
Proposal for a directive
Article 1 – paragraph 1 – point 46 – point a
Article 1 – paragraph 1 – point 46 – point a
(ma) the conditions that should be met by insurance and reinsurance undertakings in order to identify equity investments which are held with a long- term perspective to be used when calculating the Solvency Capital Requirement, in particular the calculation of the equity risk sub-module referred to in Article 105(5). These conditions should be set in a manner that allows to encompass insurance obligations with at least a 5 year duration, taking into account an holding period of 5 years on average for the equity in the relevant sub- set.
Amendment 741 #
Proposal for a directive
Article 1 – paragraph 1 – point 64 – point c
Article 1 – paragraph 1 – point 64 – point c
Directive 2009/138/EC
Article 214 – paragraph 3 – subparagraph 2
Article 214 – paragraph 3 – subparagraph 2
Before excluding the ultimate parent undertaking from group supervision pursuant to paragraph 2, point (b), the group supervisor shall consult EIOPA, and where applicable, other supervisory authorities concerned, and shall assess the impact of exercising group supervision at the level of an intermediate participating undertaking on the solvency position of the group. In particular, such an exclusion shall not be possible if it would result in a material improvement in the solvency position of the group., unless all the following conditions are met: (i) the by-laws of ultimate parent undertaking expressly preclude such undertaking from performing direction and coordination of its subsidiaries; (ii) an intermediate entity is proven to actively manage the insurance activities in the group;
Amendment 751 #
Proposal for a directive
Article 1 – paragraph 1 – point 70
Article 1 – paragraph 1 – point 70
Directive 2009/138/EC
Article 228 – paragraph 5 a (new)
Article 228 – paragraph 5 a (new)
5a. Notwithstanding paragraphs 1 to 5, the participating undertaking shall apply a capital requirement according to the market risk module approach to its participations in related undertakings from other financial sectors, provided that all the following conditions are met: (i) the participation represents less than 20% of the capital or voting rights of the related undertaking from other financial sectors; (ii) the related undertaking from other financial sectors is an entity whose transferable securities are admitted to trading on a regulated market.
Amendment 755 #
Proposal for a directive
Article 1 – paragraph 1 – point 70
Article 1 – paragraph 1 – point 70
Directive 2009/138/EC
Article 228 – paragraph 5 b (new)
Article 228 – paragraph 5 b (new)
5b. The Commission shall adopt delegated acts in accordance with Article 301a specifying the market risk module to be applied pursuant to paragraph 5a (new) of this Article.