Regulatory Alerts2015-05-29
Instruction No. 2015-I-04 of May 29, 2015, on Approval Requests for the Use of Duration-Based Equity Risk Provisions
The Prudential Control and Resolution Authority (ACPR) establishes the procedural requirements for Solvency II entities seeking approval to apply duration-based equity risk modules to their required solvency capital. Regulated entities must submit a written application accompanied by a specific dossier via the ACPR's electronic portal prior to implementation. Furthermore, these entities are obligated to promptly notify the Authority in writing of any substantial modifications to the initial approval dossier.
PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY
Instruction No. 2015-I-04 dated May 29, 2015, regarding approval requests for the use of provisions on duration-based equity risk modified by Instruction 2024-I-11 dated October 21, 2024
The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, particularly Articles L. 612-2 and L. 612-24; Having regard to the Insurance Code, particularly Articles R. 350-1 and R. 352-12 in their version resulting from Decree No. 2015-513 of May 7, 2015; Having regard to Delegated Regulation (EU) No 2015/35 of the Commission of October 10, 2014; Having regard to Ordinance No. 2015-378 of April 2, 2015; Having regard to item 5 of I of Article 16 of Decree No. 2015-513 of May 7, 2015; Having regard to the opinion of the Consultative Commission on Prudential Affairs dated January 30, 2015; Decides:
Article 1 The following are hereinafter referred to as "subject undertakings": entities subject to the so-called "Solvency II" regime mentioned in Articles L. 310-3-1 of the Insurance Code, L. 211-10 of the Mutual Code, and L. 931-6 of the Social Security Code in their version resulting from Ordinance No. 2015-378 of April 2, 2015.
Article 2 Subject undertakings wishing to request the approval of the Prudential Control and Resolution Authority, prior to applying to the required solvency capital a sub-module "equity risk" based on duration, mentioned in Article R. 352-12 of the Insurance Code in its version resulting from Decree No. 2015-513 of May 7, 2015, shall submit in writing an application, accompanied by an application dossier for the use of provisions on duration-based equity risk, the constituent elements of which are set out in the annex to this instruction.
Article 3 The application dossier for the use of provisions on duration-based equity risk must be sent in electronic format to the Prudential Control and Resolution Authority by depositing it at the following address:
2 https://acpr-portail.banque-france.fr.
Article 4 Following the approval of the use of provisions on duration-based equity risk, subject undertakings shall notify the Prudential Control and Resolution Authority without delay and in writing of any substantial modification in the constituent elements of the initial approval application dossier.
Article 5 This instruction shall enter into force upon its publication.
Paris, May 29, 2015 The President of the Prudential Control and Resolution Authority, [Robert OPHÈLE]