- Second “quick fix” directive proposed
- Solvency II implementation confirmed as 1 January 2016
The European Commission yesterday proposed the long-awaited “quick fix” directive to amend transposition and implementation dates for Solvency II.
Peter Ott, European Head of Solvency II at KPMG, commented: “At last the insurance industry can move forward with a clear deadline for Solvency II application. Despite the persistent lack of certainty, most insurers had been working on the assumption that the implementation would be pushed back to 1 January 2016. This directive makes that official and the industry can now breathe a sigh of relief.”
Janine Hawes, insurance director at KPMG, added: “This directive helps to avoid a disconnect between EU legislation and the regulatory regimes being applied in practice. By extending the directive switch-over by a further two years, the long-awaited amendments from Omnibus 2 will be agreed and incorporated into Solvency II, allowing regulatory regimes to move forward.
“We also welcome the widened period between transposition and implementation dates, which has increased from six months to 11 months. This will give industry a longer period of legal certainty before full compliance is required. It also allows regulators more time to assess any day one applications such as requests to use an internal model, ancillary own funds or undertaking specific parameters.
“Despite this delay to the full implementation of Solvency II, much development work will continue throughout 2014 and 2015, as the recent Guidelines issued by the European Insurance and Occupational Pensions Authority (EIOPA) are adopted.”
Notes to editor
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