90 Amendments of Eero HEINÄLUOMA related to 2021/0295(COD)
Amendment 227 #
Proposal for a directive
Recital 11 a (new)
Recital 11 a (new)
(11 a) By way of derogation from the automatic benefit from proportionality measures, where supervisory authorities have concerns in relation to the risk profile of an individual low-risk profile undertaking, the supervisory authorities should have the power to request the undertaking concerned to refrain from using one or several proportionality measures. Such power could be used where they identify that the risk profile of an undertaking changes significantly, as a result of a material deterioration of its solvency position, a deficiency in the functioning of its governance or a material change in the activities of the undertaking.
Amendment 238 #
Proposal for a directive
Recital 22
Recital 22
(22) IWhere requested by the national supervisory authority, insurance and reinsurance undertakings should factor any relevant macroprudential information provided by the supervisory authorities in their own- risk and solvency assessment. In order to ensure a consistent application of such additional macroprudential measures, EIOPA should develop guidelines regarding its scope of application that specify the criteria to be taken into account by national supervisory authorities when identifying the undertaking to which the measure applies. To ensure that the assessment of macroprudential risks is holistic in nature, these guidelines should provide methods and indicators for national supervisory authorities to weigh and combine the relevant criteria when selecting the addressees of the requests for additional macro-prudential measures, without setting prescriptive thresholds in relation to individual criteria. The supervisory authorities should analyse the own-risk and solvency assessment supervisory reports of undertakings within their jurisdictions, aggregate them and provide input to undertakings on the elements that should be considered in their future own-risk and solvency assessments, particularly as regards macroprudential risks. Member States should ensure that, where they entrust an authority with a macroprudential mandate, the outcome and the findings of macroprudential assessments by the supervisory authorities are shared with that macroprudential authority.
Amendment 240 #
Proposal for a directive
Recital 22 a (new)
Recital 22 a (new)
(22 a) Supervisory authorities should have the power to set a capital add-on to address one or more entity, activity-, or behaviour-based sources of systemic risk. Supervisory authorities should have the discretion to make use of this tool, whenever they deem it necessary to mitigate an identified systemic risk or the build-up thereof. They should clearly document the rationale for the add-on, apply it in a proportionate way and only as long as the conditions that lead to the application of the add-on remain in force. Supervisory authorities must also take into account procyclical effects when considering the use of this tool. In order to assist consistent conditions of application and avoid inconsistent use across the Union, the Commission should adopt a delegated act on the procedures for decisions to trigger, set, calculate and remove capital add-on for systemic risk.
Amendment 251 #
Proposal for a directive
Recital 31
Recital 31
Amendment 254 #
Proposal for a directive
Recital 32
Recital 32
Amendment 259 #
Proposal for a directive
Recital 36 a (new)
Recital 36 a (new)
(36 a) Where the undertaking invests in debt instruments which have a better credit quality than the debt instruments contained in the representative portfolio for the calculation of the volatility adjustment, the volatility adjustment may overcompensate the loss of own funds caused by widening bond spreads and may lead to undue volatility in the own funds. With the objective to offset the artificial volatility caused by such overcompensations, in these cases undertakings should be able to apply for a modification of the volatility adjustment that takes into account information on the undertaking specific investments in debt instruments.
Amendment 290 #
Proposal for a directive
Recital 77 a (new)
Recital 77 a (new)
(77 a) When adopting the Delegated Act on the Preferential treatment for long- term investments in equity, the Commission shall ensure that this treatment is granted only under strict conditions in terms of fight against money laundering, terrorist financing and tax evasion, aiming at protecting the Union financial system and the proper functioning of the internal market. Therefore, a sub-set of equity investments may be treated as long term equity investments provided that this equity is not issued by companies which have the parent company, subsidiaries or branches in a third country, which is mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes, or in the Delegated Regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes that pose significant threats to the financial system of the Union ('high-risk third countries'), stemming from Article 9 of Directive (EU) 2015/849.
Amendment 303 #
Proposal for a directive
Recital 82 a (new)
Recital 82 a (new)
(82 a) The supervision of phasing-in plans for the transitional measures on risk-free interest rates and on technical provisions should be improved, in particular by strengthening the power of the supervisor to withdraw those transitional measures where progress towards compliance with the Solvency Capital Requirement at the end of the transitional period is not achieved or where such compliance is unrealistic. In particular, the compliance could be considered unrealistic where it is based on the assumption that the situation of financial markets at the end of the transitional period is improved compared to the situation at the time of the assessment.
Amendment 308 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the undertaking’s annual gross written premium does not exceed EUR 150 000 000;
Amendment 310 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the total of the undertaking’s technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred in Article 76, does not exceed EUR 540 000 000;;
Amendment 327 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 a (new)
Article 13 – paragraph 1 – point 41 a (new)
(41a) ‘gender neutral remuneration policy’ means a remuneration policy based on equal pay for male and female workers for equal work or work of equal value;
Amendment 352 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2009/138/EC
Article 29 – paragraph 6
Article 29 – paragraph 6
6. In order to ensure consistent supervisory practices in the application of proportionality, EIOPA shall develop guidelines to facilitate common supervisory tools and further specifying the methodology to be used when classifying insurance and reinsurance undertakings as low-risk profile undertakings.; EIOPA shall review and update these guidelines every second year.
Amendment 353 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a
Article 29a
Amendment 382 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29b – paragraph 2 – point b
Article 29b – paragraph 2 – point b
(b) a declaration that the undertaking does not plan any strategic change that would lead to non-compliance with the criteria set out in Article 29a within the next threfive years;
Amendment 386 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29c – paragraph 1
Article 29c – paragraph 1
1. Member States shall ensure that, without prejudice to specific requirements set out in each proportionality measure, insurance and reinsurance undertakings classified as low-risk profile undertakings may make use allof the proportionality measures provided for in Article 35(5a), Article 41, ,Article 45(1b), Article 45(5), Article 45a(5), Article 51(6), Article 51a(1), Article 77(7) and Article144a(4), and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive.
Amendment 388 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29c – paragraph 2
Article 29c – paragraph 2
2. WBy way of derogation from paragraph 1, where the supervisory authority has serious concerns in relation to the risk profile of a low-risk profile undertaking, the supervisory authority may, in exceptional circumstances, request the undertaking concerned to refrain from using one or several proportionality measures listed in paragraph 1 provided this is justified in writing on consideration of the impact on the organisation of the undertaking and the specificities or change of its risk profilewith reference to the specific concerns relating to the risk profile of the undertaking. This power may be exercised where the serious concerns relate to: (a) the undertaking’s solvency position, assessed with and without the use of any of the transitional measures referred to in Article 77a(2), Article 308c, Article 308d and, where relevant, Article 111(1), [second] subparagraph; or (b) severe deficiencies in the functioning of the undertaking’s system of governance; or (c) material changes in the activities of the undertaking that affect the undertaking’s compliance with any of the criteria set out in Article 29a(1).
Amendment 410 #
Proposal for a directive
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Directive 2009/138/EC
Article 35a – paragraph 5a – subparagraph 2 – point a
Article 35a – paragraph 5a – subparagraph 2 – point a
(a) every three years, for low-risk profile undertakings. In exceptional circumstances and based on duly justified reasons, a supervisory authority may require low risk profile undertakings to report more frequently;
Amendment 414 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Directive 2009/138/EC
Article 35a – paragraph 1 – subparagraph 2
Article 35a – paragraph 1 – subparagraph 2
That limitation to regular supervisory reporting shall be granted only to undertakings that collectively do not represent more than 20 % of a Member State’s life and non-life insurance and reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions.
Amendment 416 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Directive 2009/138/EC
Article 35a – paragraph 1 – subparagraph 3
Article 35a – paragraph 1 – subparagraph 3
When determining the eligibility of undertakings for those limitations, supervisory authorities shallmay give priority to low-risk profile undertakings.
Amendment 420 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Directive 2099/138/EC
Article 35a – paragraph 2 – subparagraph 3
Article 35a – paragraph 2 – subparagraph 3
The exemption from reporting on an item- by-item basis shall be granted only to undertakings that collectively do not represent more than 20 % of a Member State’s life and non-life insurance or reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions. When determining the eligibility of undertakings for those limitations or exemptions, supervisory authorities shall give priority to low-risk profile undertakings.
Amendment 425 #
Proposal for a directive
Article 1 – paragraph 1 – point 20 – point a
Article 1 – paragraph 1 – point 20 – point a
Directive 2009/138/EC
Article 37 – paragraph 1 – point e
Article 37 – paragraph 1 – point e
(e) the insurance or reinsurance undertaking applies one ofthe matching adjustment referred to in Article 77b, the volatility adjustment referred to in Article 77d or the transitional measures referred to in Articles 308c and 308d and all of the following conditions are met: (i)the supervisory authority concludes that the risk profile of theat undertaking would not comply with the Solvency Capital Requirement without application of the transitional measure; (ii) the undertaking has failed to submit to the supervisory authority either the initial phasing-in plan within the required period as set out in of Article 308e, second paragraph, or the required annual report as set out the third paragraph of that Articledeviates significantly from the assumptions underlying those adjustments and transitional measures. With regard to the transitional measures referred to in Articles 308c and 308d this would include the situation where the supervisory authority has not yet received a realistic phasing-in plan required in Article 308(e), or a realistic update thereof.
Amendment 427 #
Proposal for a directive
Article 1 – paragraph 1 – point 20 a (new)
Article 1 – paragraph 1 – point 20 a (new)
Directive 2009/128/EC
Article 37a (new)
Article 37a (new)
(20 a) the following Article 37a is inserted: ‘Article 37a Macroprudential capital add-on Member States shall ensure that supervisory authorities, in agreement with EIOPA, should be able to impose a capital add-on for system risk, when they assess activity or behaviour based sources of systemic risk. The Commission shall adopt a delegated act to define under which conditions supervisory authorities are empowered to impose this capital add- on, on the procedures for decisions to trigger, set, calculate and remove capital add-ons for systemic risk.’
Amendment 434 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
3. Insurance and reinsurance undertakings shall have written policies in relation to at least risk management, internal control, internal audit, remuneration, and, where relevant, outsourcing. They shall ensure that those policies are implementedhave a written transition plan, as described under Article 44a. They shall ensure that those policies are implemented, and that reasonable steps are taken to implement the transition plan. Those written policies and that transition plan shall be reviewed at least annually.
Amendment 440 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 a (new)
Article 41 – paragraph 3 a (new)
3a. The system of governance shall ensure that the administrative, management or supervisory body is directly responsible for the sustainability risk management system described under Article 44(3a), including the successful implementation of the transition plan described under Article 44a.
Amendment 444 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 c a (new)
Article 1 – paragraph 1 – point 21 c a (new)
Directive 2009/128/EC
Article 41 – paragraphs 5 a (new), 5 b (new), 5 c (new), 5 d (new)
Article 41 – paragraphs 5 a (new), 5 b (new), 5 c (new), 5 d (new)
Amendment 451 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point b
Article 1 – paragraph 1 – point 22 – point b
Directive 2009/138/EC
Article 42 – paragraph 4
Article 42 – paragraph 4
4. Where a person who effectively runs the undertaking or has other key functions does not fulfil the requirements set out in paragraph 1, the supervisory authorities shall have the power to require the insurance and reinsurance undertaking to remove such person from that position.;
Amendment 457 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 2 b (new)
Article 44 – paragraph 2 b (new)
(ba) the following paragraph is inserted: "2b. As regards underwriting, insurance and reinsurance undertakings shall ensure that, in accordance with Article 44a, its business model and strategy for underwriting portfolio are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU)2021/1119 of the European Parliament and of the Council of 30 June 2021(“European Climate Law”), as regards the undertaking’s operations and compatible with the transition to a sustainable economy and with the limiting of global warming to 1,5 °C in line with the Paris Agreement with no or limited overshoot and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change."
Amendment 461 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 2 c (new)
Article 44 – paragraph 2 c (new)
(bb) the following paragraph is inserted: "2c. As regards investment, insurance and reinsurance undertakings shall ensure that, in accordance with Article 44a, its business model and strategy for investment portfolio are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”), as regards the undertaking’s operations and compatible with the transition to a sustainable economy and with the limiting of global warming to 1,5 °C in line with the Paris Agreement with no or limited overshoot and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change."
Amendment 464 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 3 a (new)
Article 44 – paragraph 3 a (new)
(bb) the following paragraph is inserted: "3a. The risk management system shall cover any sustainability risks to which the insurance or reinsurance undertaking is exposed within the areas set out at paragraph 2 above and shall consider the principal adverse impacts of the insurance or reinsurance undertaking, including the principal adverse impacts of the companies and activities for which the undertaking provides finance or underwriting services within its asset portfolio and insurance portfolio, on sustainability factors. The written policy on risk management referred to in Article 41(3) shall include policies relating to sustainability risks and sustainability factors, as well as a stewardship policy. The stewardship policy shall include a report of the impact of the policy in the last financial reporting period."
Amendment 469 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b c (new)
Article 1 – paragraph 1 – point 23 – point b c (new)
Directive 2009/138/EC
Article 44 – paragraph 5 a (new)
Article 44 – paragraph 5 a (new)
(bc) the following paragraph is added: "5a. The written policy on remuneration referred to at Article 41(3) shall promote sound and effective risk management in line with the written policy on risk management referred to in Article 41(3), including in relation to sustainability risks and the adverse impacts of the insurance or reinsurance undertaking on sustainability factors. The Commission shall adopt delegated acts in accordance with Article 301a to specify that where undertaking’s remuneration schemes include both fixed and variable components, variable remuneration component should be not less than 50 percentage points linked to achievement of the targets set as part of the transition plan of the undertaking, implemented in accordance with Articles 44(2b), 44(2c) and 44a."
Amendment 474 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
Article 44 a (new)
(23a) the following Article is inserted: 'Article 44a Transition plan 1. Insurance and reinsurance undertakings shall have a written transition plan covering both underwriting and investment activities, with intermediate implementing actions and specific science-based short-term, medium- and long-term targets, including absolute emission reduction targets for attributable greenhouse gas (GHG)emissions for 2025 and 2030, reviewed every year up to 2050. They shall take reasonable steps to ensure that this transition plan is implemented. They shall integrate their transition plan within their underwriting and investment strategy and decisions. 2. The transition plan shall be reviewed at least annually. It shall be subject to prior approval by the administrative, management or supervisory body and be adapted in view of any significant changes affecting the transition plan or its implementation. 3. The transition plan shall be well integrated into the organisational structure and in the decision-making processes of the insurance or reinsurance undertaking. The system of governance required under Article 41 shall include a clear allocation and appropriate segregation of responsibilities for implementing the transition plan and provide for proper consideration of the implementation of the transition plan by the persons who effectively run the undertaking or have other key functions. 4. The transition plan shall be integrated into the risk management system required under Article 44, and particularly under Article 44 (2b) and 44 (2c), including by identifying, measuring, monitoring, managing and reporting matters that pose a risk to the successful implementation of the transition plan.'
Amendment 478 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point a
Article 1 – paragraph 1 – point 24 – point a
Directive 2009/138/EC
Article 45 – paragraph 1 – subparagraph 2 – point d
Article 45 – paragraph 1 – subparagraph 2 – point d
(d) consideration and analysisssessment of the macroeconomic situation, and possible macroeconomic, geopolitical, environmental and financial markets’ developments, and, upon a reasoned request of the supervisory authority, macroprudential concerns, that may affect the specific risk profile, the approved risk tolerance limits, the business strategy, the underwriting activities or the investment decisions, and the overall solvency needs referred to in point (a) of the undertaking;
Amendment 482 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 1 – introductory part
Article 45 – paragraph 1a – subparagraph 1 – introductory part
1a. For the purpose of paragraph 1, points (d) and (e), macroeconomic, geopolitical, environmental and financial markets’ developments shall include, at least, changes in the following:
Amendment 485 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 2
Article 45 – paragraph 1a – subparagraph 2
For the purpose of the paragraph 1, point (d), macroprudential concerns shall include, at leastmongst others, plausible unfavourable future scenarios and risks related to the credit cycle and economic downturn, climate risks, herding behaviour in investments or excessive exposure concentrations at the sectoral level.
Amendment 489 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b a (new)
Article 1 – paragraph 1 – point 24 – point b a (new)
Directive 2009/138/EC
Article 45 – paragraph 2
Article 45 – paragraph 2
(ba) paragraph 2 is replaced by the following: "2. For the purposes of paragraph 1(a), the undertaking concerned shall have in place processes which are proportionate to the nature, scale and complexity of the risks inherent in its business and which enable it to properly identify and assess the risks it faces in the short and long term and to which it is or could be exposed, including sustainability risk. The undertaking shall demonstrate the methods used in that assessment. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
Amendment 504 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5
Article 45a – paragraph 5
Amendment 514 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b
Article 51 – paragraph 1a – point b
(b) a brief description of the capital management and the risk profile of the undertaking, including in relation to sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors, and with reference to how the undertaking’s stewardship policy has contributed to addressing these impacts.;
Amendment 521 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b a (new)
Article 51 – paragraph 1a – point b a (new)
(b a) where the undertaking conducts a climate change scenario analysis, a description of the results of the latest climate change scenario analysis described in Article 45a, and a description of how the transition plan of the undertaking described at Article 44a is addressing and reducing its exposure to climate change risks;
Amendment 523 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point a
Article 51 – paragraph 1b – point a
(a) a description of the system of governance; including a description of the role of the administrative, management and supervisory bodies with regard to sustainability risks in line with article 41.
Amendment 525 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b a (new)
Article 51 – paragraph 1b a (new)
For the purposes of paragraph 1a, insurance and reinsurance undertakings may describe sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors by clear cross- reference to sections of their management report containing relevant information.
Amendment 528 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi a (new)
Article 51 – paragraph 1b – point c – point vi a (new)
(vi a) climate and other sustainability targets and transition plan targets of the undertaking, including absolute carbon emission reduction targets for its underwriting and investment portfolios, submitted in accordance with Articles 44(2b) (new), 44(2c) (new) and 44a (new), and the progress made towards implementing them;
Amendment 535 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi b (new)
Article 51 – paragraph 1b – point c – point vi b (new)
(vi b) how the undertaking’s business model and strategy take account of sustainability risks faced by the undertaking;
Amendment 536 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi c (new)
Article 51 – paragraph 1b – point c – point vi c (new)
(vi c) the role of the administrative, management and supervisory bodies with regard to sustainability risks.
Amendment 540 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
Article 1 – paragraph 1 – point 27
Directive 2009/138/EC
Article 51a – paragraph 1
Article 51a – paragraph 1
1. For insurance and reinsurance undertakings other than low-risk profile undertakings and captive insurance undertakings and captive reinsurance undertakings, the balance sheet disclosed as part of the solvency and financial condition report or as part of the single solvency and financial condition report shall be subject to an audit.
Amendment 542 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
Article 1 – paragraph 1 – point 27
Directive 2009/138/EC
Article 51a – paragraph 2
Article 51a – paragraph 2
Amendment 545 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
Article 1 – paragraph 1 – point 27
Directive 2009/138/EC
Article 51a – paragraph 3
Article 51a – paragraph 3
3. The audit shall be carried out by a statutory auditor or an audit firm, in accordance with the applicable international standards, unless this Directive, or delegated acts adopted pursuant to it establish other principles and requirements for the assessment of any item of the balance sheet. Statutory auditors and audit firms, when performing this task, shall comply with the duties of auditors set out in Article 72 and will not provide any service as foreseen under Article 5 of Regulation (EU) No 537/2014, during the period the audit services are provided.
Amendment 550 #
Proposal for a directive
Article 1 – paragraph 1 – point 34 a (new)
Article 1 – paragraph 1 – point 34 a (new)
Directive 2009/138/EC
Article 64 – paragraph 3 a (new)
Article 64 – paragraph 3 a (new)
(34a) in Article 64, the following paragraph is added: "Paragraphs 1 to 3 of this Article shall not prevent the competent authorities from publishing the outcome of stress tests carried out in accordance with Article 34(4) of this Directive or Article 32 of Regulation (EU) No 1094/2010 or from transmitting the outcome of stress tests to EIOPA for the purpose of the publication by EIOPA of the results of Union-wide stress tests. "
Amendment 561 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 1 – subparagaph 1 – introductory part
Article 77a – paragraph 1 – subparagaph 1 – introductory part
1. The determination of the relevant risk-free interest rate term structure referred to in Article 77(2) shall make use of, and be consistent with, information derived from relevant financial instruments. That determination shall take into account relevant financial instruments of those maturities where the markets for those financial instruments are deep, liquid and transparent. The relevant risk-free interest rate term structure shall be extrapolated for maturities longer than the first smoothing point. The first smoothing point for a currency shall be 30 years and the longest maturity for which all of the following conditions are met:
Amendment 569 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 – subparagraph 1
Article 77a – paragraph 2 – subparagraph 1
2. For the purpose of paragraph 1, second subparagraph, any parameters determining the speed of the convergence of the forward rates towards the ultimate forward rate of the extrapolation may be chosen such that on [OP please insert date = application date] the risk-free interest rate term structure is sufficiently similar to the risk-free interest rate term structure on that date determined in line with the rules for the extrapolation applicable on [OP please insert date = one day before date of application]. Those parameters of the extrapolation shall be decreased linearly at the beginning of each calendar year, during a transitional period. The final parameters of the extrapolation shall be applied as of 1 January 20329.
Amendment 570 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 a (new)
Article 77a – paragraph 2 a (new)
2a. Undertakings should disclose in their public reporting the impact of the convergence speed parameter at 5% on their financial position. Undertakings that would not meet their Solvency Capital Requirement with a convergence speed parameter at 5%, should provide evidence to their supervisory authority and EIOPA that their dividend payments or other voluntary capital distribution do not put at risk the protection of policyholders and beneficiaries.
Amendment 576 #
Proposal for a directive
Article 1 – paragraph 1 – point 38 – point b
Article 1 – paragraph 1 – point 38 – point b
Directive 2009/138/EC
Article 77d – paragraph 1 c (new)
Article 77d – paragraph 1 c (new)
1c. Insurance and reinsurance undertakings may, subject to prior approval by the supervisory authority, apply an undertaking-specific adjustment to this risk-corrected spread of the currency referred to in paragraph 3, under the condition that the information that is inherent to the relevant assets of the undertaking and that is reported by the undertaking in line with Article 35, paragraphs 1 to 4 is of sufficient quality to allow a robust and reliable calculation. This adjustment shall correspond to the lowest between 100% and the ratio of the risk-corrected spread calculated based on the undertaking’s portfolio of investments in debt instruments and the risk-corrected spread calculated based on the reference portfolio for the relevant currency. The risk-corrected spread based on the undertaking’s portfolio of investments in debt instruments shall be calculated in the same manner as the risk-corrected spread based on the reference portfolio for the relevant currency, but using undertaking- specific data on the weights and the average duration of the relevant sub- classes within the undertaking’s portfolio of investments in debt instruments for the relevant currency. Where the adjustment is lower than 100%, the volatility adjustment shall not be increased by a macro volatility adjustment as referred to in paragraph 4;
Amendment 583 #
Proposal for a directive
Article 1 – paragraph 1 – point 38 – point c
Article 1 – paragraph 1 – point 38 – point c
Directive 2009/138/EC
Article 77d – paragraph 3
Article 77d – paragraph 3
3. The amount of the volatility adjustment to risk-free interest rates for a currecny shall be calculated as follows: 𝑉𝐴𝑐𝑢 = 85% ∙ 𝐶𝑆𝑆𝑅𝐶𝑈 ∙ 𝑅𝐶𝑆𝐶𝑈 ∙ 𝑩𝑹𝑪 (𝒊𝒏𝒔𝒖𝒓𝒆𝒓) Where: cu (a) VA is the volatility adjustment for a cu currency cu; cu (b) CSSR is the credit spread sensitivity cu ratio of an insurance or reinsurance undertaking for the currency cu; cu (c) RCS is the risk-corrected spread for cu the currency cu. ; (d) BRC (insurer) is the insurer’s basis risk correction to risk-corrected spread of the currency. cu CSSR shall not be negative and not be cu higher than one. It shall take values lower than one where the sensitivity of the assets of an insurance or reinsurance undertaking in a currency to changes in credit spreads is lower than the sensitivity of the technical provisions of that undertaking in that currency to changes in interest rates. cu RSC shall be calculated as the difference cu between the spread referred to in paragraph 2 and the portion of that spread that is attributable to a realistic assessment of expected losses or unexpected credit or other risk of the assets. VA shall apply to the relevant risk-free cu interest rates of the term structure that are not derived by means of extrapolation in accordance with Article 77a. Where the extrapolated part of the relevant risk-free interest rates takes into account information from financial instruments other than bonds pursuant to Article cu 77a(1), VA shall also apply to risk-free cu interest rates derived from those financial instruments. The extrapolation of the relevant risk-free interest rate term structure shall be based on those adjusted risk-free interest rates. BRC (insurer) shall be by definition equal to the ratio RCS (insurer) / RCS (currency) subject to a floor of 75% and a cap of 125%, in order respectively not to decrease the risk-corrected spread by more than 25% and not to increase it by more than 25%.
Amendment 601 #
Proposal for a directive
Article 1 – paragraph 1 – point 40 – point a – point ii
Article 1 – paragraph 1 – point 40 – point a – point ii
Directive 2009/138/EC
Article 86 – paragraph 1 – point b – point i
Article 86 – paragraph 1 – point b – point i
(i) the formula for the extrapolation referred to in Article 77a(1), including the parameters that determine the convergence speed of the extrapolation; in line with the market consistent valuation principle.
Amendment 602 #
Proposal for a directive
Article 1 – paragraph 1 – point 40 – point a – point ii a (new)
Article 1 – paragraph 1 – point 40 – point a – point ii a (new)
Directive 2009/138/EC
Article 86 – paragraph 1 – point d
Article 86 – paragraph 1 – point d
(iia) in Article 86, paragraph 1, point (d) is replaced by the following: "(d) the methods and assumptions to be used in the calculation of the risk margin including the determination of the amount of eligible own funds necessary to support the insurance and reinsurance obligations and the calibration of the cost-of-capital rate, as referred to in Article 77(5); (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)which should not be lower than 5%, as referred to in Article 77(5); " Or. en
Amendment 629 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 a (new)
Article 1 – paragraph 1 – point 43 a (new)
Directive 2009/138/EC
Article 105 a (new)
Article 105 a (new)
(43a) the following Article is inserted: ‘Article 105a Long-term equity investments The European Commission shall adopt a delegated defining the criteria for the treatment of equity investments as long term equity investments. In order to benefit of a preferential treatment over these investments, criteria shall ensure a safe risk-management, that the investments take place in the Union, and that this equity is not issued by companies which have the parent company, subsidiaries or branches in a third country, which is mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non- cooperative jurisdictions for tax purposes, or in the Delegated Regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes that pose significant threats to the financial system of the Union ('high-risk third countries'), stemming from Article 9 of Directive (EU) 2015/849.’
Amendment 634 #
Proposal for a directive
Article 1 – paragraph 1 – point 45
Article 1 – paragraph 1 – point 45
Directive 2009/138/EC
Article 109 – paragraph 2
Article 109 – paragraph 2
2. Without prejudice to paragraph 1 of this Article and to Article 102(1), where an insurance or reinsurance undertaking calculates the Solvency Capital Requirement and a risk module or sub- module does not represent a share of more than 5 % of the Basic Solvency Capital Requirement referred to in Article 103, point (a), the undertaking may use a simplified calculation for that risk module or sub-module during a period of no more than threewo years following that calculation of the Solvency Capital Requirement.
Amendment 650 #
Proposal for a directive
Article 1 – paragraph 1 – point 47
Article 1 – paragraph 1 – point 47
Directive 2009/138/EC
Article 112 – paragraph 7
Article 112 – paragraph 7
7. After having received approval from supervisory authorities to use an internal model, and each time they report the result of a calculation of the Solvency Capital Requirement pursuant to Article 102(1), insurance and reinsurance undertakings shall provide the supervisory authorities with an estimate of the Solvency Capital Requirement determined in accordance with the standard formula, as set out in Subsection 2 as well as an explanation on possible divergence between both calculations.;
Amendment 657 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point - a (new)
Article 1 – paragraph 1 – point 49 – point - a (new)
Directive 2009/138/EC
Article 132 – paragraphs 1, 2, 2 a (new) and 2 b (new)
Article 132 – paragraphs 1, 2, 2 a (new) and 2 b (new)
(-a) paragraphs 1 and 2 are replaced by the following: "1. Member States shall ensure that insurance and reinsurance undertakings invest all their assets in accordance with the prudent person principle, as specified in paragraphs 2, 2a (new), 2b (new), 3 and 4. 2. With respect to the whole portfolio of assets, insurance and reinsurance undertakings shall only invest in assets and instruments whose risks , including potential sustainability risks, the undertaking concerned can properly identify, measure, monitor, manage, control and report, and appropriately take into account in the assessment of its overall solvency needs in accordance with point (a) of the second subparagraph of Article 45(1). All assets, in particular those covering the Minimum Capital Requireme2a. Insurance and reinsurance undertakings shall take into and the Solvency Capital Requirement, shall be invested in such a manner as to ensure the security, quality, liquidity and profitability of the portfolio as a whole. In addition the localisation of those assets shall be such as to ensure their avccount the potential long-term impact of their investment strategy and decisions on sustainability factors and, where relevant, that strategy and those decisions shall reflect the sustailnability. Assets held to cov preferences of its customers the technical provisions shall also be invested in a manner appropriate to the nature and duration of the insurance and reinsurance liabilities. Those assets shall be invested in the best interest of all policy holders and beneficiaries taking into account any disclosed policy objective. In the case of a conflict of interest, insurance undertakings, or the entity which manages their asset portfolio, shall ensure thataken into account in the product approval process as referred to in Article 4of Commission Delegated Regulation (EU) 2017/2358. 2b. Insurance and reinsurance undertakings shall have and shall publicly disclose a written policy in relation to their approach to stewardship including a summary of how the steps the undertaking has taken to achieve the goals of the policy in the preceding year. The stewardship policy shall be subject to prior approval by the administrative, management or supervisory body and shall be reviewed at least annually. Insurance and reinsurance undertakings shall integrate their transition plan within their investment is made in the best interest of policy holders and beneficiaries. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)strategy and decisions. " Or. en
Amendment 662 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 5
Article 132 – paragraph 5
5. Member States shall ensure that insurance and reinsurance undertakings take account of possible macroeconomic and financial markets’ developments including developments related to climate change and pandemics and, at the request of the supervisory authority, macroprudential concerns when they decide on their investment strategy.
Amendment 665 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 6
Article 132 – paragraph 6
6. Insurance and reinsurance undertakings shall assess the extent to which their investment strategy may affect macroeconomic and financial markets’ developments including developments related to climate change and pandemics and have the potential to turn into sources of systemic risk, and incorporate such considerations as part of their investment decisions.
Amendment 670 #
Proposal for a directive
Article 1 – paragraph 1 – point 52
Article 1 – paragraph 1 – point 52
Directive 2009/138/EC
Article 139 – paragraph 3
Article 139 – paragraph 3
3. If a winding-up proceeding is not opened within two months of receipt of the information referred to in paragraph 1, the supervisory authority of the home Member State shall consider restricting or prohibiting the free disposal of assets of the insurance or reinsurance undertaking. It shall inform the supervisory authorities of the host Member States accordingly. At the request of the supervisory authority of the home Member State, those authorities shall take the same measures. The supervisory authority of the home Member State shall designate the assets to be covered by such measures.
Amendment 671 #
Proposal for a directive
Article 1 – paragraph 1 – point 52
Article 1 – paragraph 1 – point 52
Directive 2009/138/EC
Article 139 – paragraph 4
Article 139 – paragraph 4
4. EIOPA mayshall develop guidelines for the actions that supervisory authorities should take when they observe a failure to comply with the Minimum Capital Requirement or the risk of non-compliance referred to in paragraph 1.;
Amendment 673 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144a – paragraph 2
Article 144a – paragraph 2
2. For the purpose of paragraph 1, Member States shall ensure that insurance and reinsurance undertakings draw up and maintain a liquidity risk management plan projecting the incoming and outgoing cash flows in relation to their assets and liabilities. Member States shall ensure that insurance and reinsurance undertakings develop and keep up to date a set of liquidity risk indicators to identify, monitor and address potential liquidity stress.
Amendment 674 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144a – paragraph 6 – subparagraph 1
Article 144a – paragraph 6 – subparagraph 1
6. In order to ensure consistent application of this Article, EIOPA shall develop draft regulatory technical standards to further specify the content, the format and the frequency of update of the liquidity risk management plan.
Amendment 679 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 3 – subparagraph 4 a (new)
Article 144b – paragraph 3 – subparagraph 4 a (new)
Member States will ensure that supervisory authorities have the necessary powers for this purpose.
Amendment 680 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 3 – subparagraph 5
Article 144b – paragraph 3 – subparagraph 5
Member States shall ensure that authorities with a macroprudential mandate, where different from the supervisory authorities, are duly and timely informed of the supervisory authority's intention to make use of the power referred to in this paragraph, and are appropriatefully involved in assessing the potential unintended effects referred to in the second subparagraph.
Amendment 681 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 3 – subparagraph 6
Article 144b – paragraph 3 – subparagraph 6
Member States shall ensure that supervisory authorities shall notify EIOPA and ESRB in due time whenever the power referred to in paragraph 3 is exercised to address a risk for the stability of the financial system.
Amendment 683 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 4 – subparagraph 1
Article 144b – paragraph 4 – subparagraph 1
4. The power referred to in paragraph 3 may be exercised in relation to all undertakings operating in that Member State where the exceptional circumstances referred to in paragraph 3 affect the whole or a significant part of the insurance market.
Amendment 684 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 5 – subparagraph 1
Article 144b – paragraph 5 – subparagraph 1
5. Member States shall ensure that the authority referred to in paragraph 4, second subparagraph, shall notify in due time EIOPA and, where the measure is taken to address a risk to the stability of the financial system, the ESRB of the use of the power referred to in paragraph 4.
Amendment 685 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144b – paragraph 6 – point a
Article 144b – paragraph 6 – point a
(a) provide further guidance on measures to address deficiencies in liquidity risk management and on the form, activation and calibration of powers that supervisory authorities may exercise to reinforce the liquidity position of undertakings when liquidity risks are identified and are not adequately remedied by these undertakings;
Amendment 686 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144c – paragraph 1
Article 144c – paragraph 1
1. Without prejudice to Article 141, Member States shall ensure that supervisory authorities have the power to take measures to preserve the financial position of individual insurance or reinsurance undertakings during periods of exceptional sector-wide shockadverse situations that have the potential to threaten the financial position of the undertaking concerned or the stability of the financial system.
Amendment 688 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144c – paragraph 2 – subparagraph 1 – introductory part
Article 144c – paragraph 2 – subparagraph 1 – introductory part
2. During periods of exceptional sector-wide shocks, supervisory authorities shall have the power to require undertakings with a particularly vulnerable risk profile to take at least the following measures:
Amendment 690 #
Proposal for a directive
Article 1 – paragraph 1 – point 54
Article 1 – paragraph 1 – point 54
Directive 2009/138/EC
Article 144c – paragraph 6
Article 144c – paragraph 6
6. For the purpose of this Article, significant intra-group transactions referred to in Article 245(2) including intra-group dividend distributions, shall only bebe temporary suspended or restricted where they are a threat to the solvency or liquidity position of the group or of one of the undertakings within the group. .The supervisory authority of a related undertaking shall consult the group supervisor before suspending or restricting transactions with the rest of the group.
Amendment 707 #
Proposal for a directive
Article 1 – paragraph 1 – point 60
Article 1 – paragraph 1 – point 60
Directive 2009/138/EC
Article 159a – paragraph 1 – subparagraph 1 – introductory part
Article 159a – paragraph 1 – subparagraph 1 – introductory part
1. The supervisory authority of the home Member State shall, upon the request of the supervisory authority of a host Member State, submit within a month following the request, all of the following information received in accordance with Article 35, in relation to insurance or reinsurance undertakings with significant cross-border activities in the territory of that host Member State:
Amendment 718 #
Proposal for a directive
Article 1 – paragraph 1 – point 61 – point c
Article 1 – paragraph 1 – point 61 – point c
Directive 2009/138/EC
Article 212 – paragraph 3 – subparagraph 1 a (new)
Article 212 – paragraph 3 – subparagraph 1 a (new)
Where the undertakings referred to in the first subparagraph do not have their head office in the same Member State, Member States shall ensure that only the national supervisory authority acting as group supervisor in accordance with Article 247 may conclude, after consulting other supervisory authorities concerned, that such undertakings form a group based on its opinion that those undertakings are managed on a unified basis.
Amendment 722 #
Proposal for a directive
Article 1 – paragraph 1 – point 61 – point c
Article 1 – paragraph 1 – point 61 – point c
Directive 2009/138/EC
Article 212 – paragraph 5 a (new)
Article 212 – paragraph 5 a (new)
5a. In order to ensure consistent application of this Article, EIOPA shall develop regulatory technical standards to supplement or further specify the factors that supervisory authorities shall consider to identify a relationship between at least two undertakings referred to in paragraphs 2 and 3 of this Article. EIOPA shall submit those draft regulatory technical standards to the Commission by 12 months after entry into force]. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Amendment 735 #
Proposal for a directive
Article 1 – paragraph 1 – point 63
Article 1 – paragraph 1 – point 63
Directive 2009/138/EC
Article 213a – paragraph 4 a (new)
Article 213a – paragraph 4 a (new)
4a. The following groups shall never be classified as small and non-complex groups: (a) groups which are financial conglomerates within the meaning of Article 2, point 14 of Directive 2002/87/EC; (b) groups where at least one subsidiary undertaking is an undertaking referred to in Article 228(1).
Amendment 736 #
Proposal for a directive
Article 1 – paragraph 1 – point 64 – point a
Article 1 – paragraph 1 – point 64 – point a
Directive 2009/138/EC
Article 214 – paragraph 1 – subparagraph 1 a (new)
Article 214 – paragraph 1 – subparagraph 1 a (new)
For the sole purpose of ensuring compliance with this Title, the exercise of group supervision may imply direct supervision and the exercise of supervisory powers over insurance holding companies and mixed financial holding companies by supervisory authorities.
Amendment 750 #
Proposal for a directive
Article 1 – paragraph 1 – point 70
Article 1 – paragraph 1 – point 70
Directive 2009/138/EC
Article 228 – paragraph 3 – point g
Article 228 – paragraph 3 – point g
(g) for each related undertaking referred to in paragraph 1, point (e), of this Article, the higher of the required solvency margin calculated in accordance with Article 17b of Directive (EU) 2016/2341, and any capital requirement imposed under national law of the Member State where the undertaking is registered or authorised.
Amendment 770 #
Proposal for a directive
Article 1 – paragraph 1 – point 80
Article 1 – paragraph 1 – point 80
Directive 2009/138/EC
Article 246a – paragraph 3
Article 246a – paragraph 3
3. Notwithstanding paragraph 2, supervisory authorities mayshall require an insurance or reinsurance subsidiary to draw up and maintain a liquidity risk management plan at individual level whenever they detect a specific liquidity vulnerability or the liquidity management plan at group level does not include appropriate information which the supervisory authority having authorised the subsidiary requires comparable undertakings to provide for the purpose of monitoring their liquidity position.
Amendment 771 #
Proposal for a directive
Article 1 – paragraph 1 – point 80
Article 1 – paragraph 1 – point 80
Directive 2009/138/EC
Article 246a – paragraph 4 – subparagraph 1
Article 246a – paragraph 4 – subparagraph 1
4. In order to ensure consistent application of this Article, EIOPA shall develop regulatory technical standards to further specify the content, the format and frequency of update of the liquidity risk management framework plan at group level.
Amendment 773 #
Proposal for a directive
Article 1 – paragraph 1 – point 84
Article 1 – paragraph 1 – point 84
Directive 2009/138/EC
Article 256b – paragraph 1 a (new)
Article 256b – paragraph 1 a (new)
The Commission may adopt delegated acts in accordance with Article 301a to change the deadline laid down in paragraph 1, provided that the change is necessary due to sanitary emergencies, natural catastrophes or other extreme events.
Amendment 775 #
Proposal for a directive
Article 1 – paragraph 1 – point 86 – point b
Article 1 – paragraph 1 – point 86 – point b
Directive 2009/138/EC
Article 258 – paragraph 2 c (new)
Article 258 – paragraph 2 c (new)
2c. EIOPA shall issue guidelines in order to ensure a harmonised application of the measures in paragraph 2b.
Amendment 776 #
Proposal for a directive
Article 1 – paragraph 1 – point 86 – point b
Article 1 – paragraph 1 – point 86 – point b
Directive 2009/138/EC
Article 258 – paragraph 2 d (new)
Article 258 – paragraph 2 d (new)
Amendment 783 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
1. EIOPA, after consulting the ESRB, shall assess, on the basis of available data and the findings of the Platform on Sustainable Finance referred to in Article 20 of Regulation (EU) 2020/852 of the European Parliament and of the Council* and the EBA in the context of its work under the mandate set out in Article 501c, point (c), of Regulation (EU) 575/2013 whether a dedicated prudential treatment of exposures related to assets or activities associated substantially with environmental or social objectives would be justified. In particular, EIOPA shall assess the potential effects of a dedicated prudential treatment of exposures related to assets andfor insurance investment and underwriting activities which are associated substantially with environmental and/or social objectives or which are associated substantially with harm to such objectives on the protection of policy holders and financial stability in the Union.
Amendment 795 #
Proposal for a directive
Article 1 – paragraph 1 – point 91 a (new)
Article 1 – paragraph 1 – point 91 a (new)
Directive 2009/138/EC
Article 304b (new)
Article 304b (new)
(91a) the following Article is inserted: ‘Article 304b Profit sharing reserve schemes The Commission shall publish a report on the use of profit sharing reserve schemes in the Member States, analysing their impact on the balance sheet of the insurance and reinsurance undertakings, break down per Member States, within 12 months from the entry into force of the Directive. This report shall assess the risks of these schemes in terms of financial stability and policyholder protection, their impact on the level playing field among undertakings in the Union, and the legislations adopted in the Member States in this regard. On the basis of this report, the Commission shall adopt a legislative proposal to phase-out these schemes over a defined transitional period, and to adopt safeguards in order to limit the risks during this transitional period stemming from them the financial stability and policyholder protection.’
Amendment 798 #
Proposal for a directive
Article 1 – paragraph 1 – point 94 – point c
Article 1 – paragraph 1 – point 94 – point c
Directive 2009/138/EC
Article 308b – paragraph 17 – subparagraph 1b
Article 308b – paragraph 17 – subparagraph 1b
Where an insurance or reinsurance group materially relies on the use of the transitional measures referred to in Articles 308c and 308d in such a manner that it misrepresents the actual solvency position of the group, even where the group Solvency Capital Requirement would be complied with without the use of those transitional measures, the group supervisor shall have the power to take appropriate measures, including the possibility to reducelike the reduction of the amount of own funds stemming from the use of those transitional measures that may be deemed eligible to cover the group Solvency Capital Requirement.;
Amendment 800 #
Proposal for a directive
Article 1 – paragraph 1 – point 95 – point b
Article 1 – paragraph 1 – point 95 – point b
Directive 2009/138/EC
Article 308c – paragraph 4 – point c – point iv
Article 308c – paragraph 4 – point c – point iv
(iv) an assessment of the dependency of the undertaking on this transitional measure and, where applicable, a description of the measures taken or planned by the undertaking as well as a concrete timing in which these measures have effect, to reduce or remove the dependency.;
Amendment 801 #
Proposal for a directive
Article 1 – paragraph 1 – point 96 – point b
Article 1 – paragraph 1 – point 96 – point b
Directive 2009/138/EC
Article 308c – paragraph 4 – point c – point iv
Article 308c – paragraph 4 – point c – point iv
(iv) an assessment of the dependency of the undertaking on this transitional measure and, where applicable, a description of the measures taken or planned by the undertaking as well as a concrete timing in which these measures have effect, to reduce or remove the dependency.;
Amendment 802 #
Proposal for a directive
Article 1 – paragraph 1 – point 96 a (new)
Article 1 – paragraph 1 – point 96 a (new)
Directive 2009/138/EC
Article 308e
Article 308e
(96a) Article 308e is replaced by the following: " Insurance and reinsurance undertakings that apply the transitional measures set outreferred to in Articles 77a(2), 308c or, 308d or, where relevant, Article 111(1), second or third subparagraph shall inform the supervisory authority as soon as they observe that they would not comply with the Solvency Capital Requirement without application of these transitional measures. The supervisory authority shall require the insurance or reinsurance undertaking concerned to take the necessary measures to ensure compliance with the Solvency Capital Requirement at the end of the transitional period. Within two months from observation of non-compliance with the Solvency Capital Requirement without application of these transitional measures, the insurance or reinsurance undertaking concerned shall submit to the supervisory authority a phasing-in plan setting out the planned measures, including the timing of those measures, to establish the level of eligible own funds covering the Solvency Capital Requirement or to reduce its risk profile to ensure compliance with the Solvency Capital Requirement at the end of the transitional period. The insurance or reinsurance undertaking concerned may update the phasing-in plan during the transitional period. The insurance and reinsurance undertakings concerned shall submit annually a report to their supervisory authority setting out the measures taken and the progress made to ensure compliance with the Solvency Capital Requirement at the end of the transitional period. Supervisory authorities shallmay revoke the approval for the application of the transitional measure where that progress report showset out in Articles 308c and 308d where the undertaking cannot demonstrate to the satisfaction of the supervisory authority that sufficient progress thats been made with respect to compliance with the Solvency Capital Requirement without transitional measures at the end of the transitional period is unrealistic. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630). Supervisory authorities shall revoke the approval for the application of the transitional measure set out in Articles 308c and 308d where that compliance with the Solvency Capital Requirement at the end of the transitional period is unrealistic.; " Or. en