Regulatory Alerts2016-01-14
Instruction No. 2016-I-03 of January 14, 2016 defining the conditions for exemption from reporting external ratings information in detailed statements on investments and derivatives
The Prudential Control and Resolution Authority issued Instruction No. 2016-I-03 to establish exemption criteria for submitting external ratings data in detailed investment and derivative reports. The instruction specifies that individual entities and parent companies must report this information only if their total balance sheet exceeds specific thresholds and they have direct access to the data without outsourcing investment management. These requirements apply to entities subject to Solvency II and govern reporting on annual, quarterly, and financial stability bases.
PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY
Instruction No. 2016-I-03 defining the conditions for exemption from reporting information on external ratings in the detailed statements on investments and derivatives
The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, particularly Article L. 612-24; Having regard to the Insurance Code; Having regard to the Mutual Code; Having regard to the Social Security Code; Having regard to Delegated Regulation (EU) No 2015/35 of October 10, 2014; Having regard to Commission Implementing Regulation (EU) 2015/2450 of December 2, 2015 defining implementing technical standards regarding communication models for information to supervisory authorities under Directive 2009/138/EC of the European Parliament and of the Council; Having regard to Instruction No. 2016-I-01 of the Prudential Control and Resolution Authority determining the thresholds for the application of quarterly information submissions for subject entities; Having regard to Instruction No. 2016-I-02 defining the exemption conditions for the entities mentioned in Article 3 of Instruction No. 2016-I-01; Having regard to Instruction No. 2016-I-04 of the Prudential Control and Resolution Authority regarding information to be communicated for financial stability purposes (Insurance sector); Having regard to the opinion of the Prudential Affairs Consultative Commission dated November 24, 2015.
DECIDES
Article 1 The following are hereinafter referred to as "subject individual entities": entities falling under 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.
The following are hereinafter referred to as "subject parent and participating companies": participating and parent companies mentioned respectively in the second and third paragraphs of Article L. 356-2 of the Insurance Code.
Article 2 The following are hereinafter referred to as "detailed statements": the detailed statements on investments (S.06.02) and derivatives (S.08.01), defined in Annex I of Commission Implementing Regulation (EU) 2015/2450 of December 2, 2015 (hereinafter "Implementing Regulation (EU) 2015/2450"), and submitted by subject individual entities and subject parent and participating companies:
- on an annual basis, in application of Implementing Regulation (EU) 2015/2450;
- on a quarterly basis, in application of Implementing Regulation (EU) 2015/2450 and of Instruction No. 2016-I-01 of the Prudential Control and Resolution Authority determining the thresholds for the application of quarterly information submissions for subject entities and of Instruction No. 2016-I-02 of the Prudential Control and Resolution Authority defining the exemption conditions for the entities mentioned in Article 3 of Instruction No. 2016-I-01;
- in application of Instruction No. 2016-I-04 of the Prudential Control and Resolution Authority regarding information to be communicated for financial stability purposes.
Article 3 Subject individual entities and subject parent and participating companies submitting the detailed statements referred to in Article 2, transmit to the Prudential Control and Resolution Authority the information contained in these statements concerning external ratings and external credit rating agencies defined in Annex II of Implementing Regulation (EU) 2015/2450, if they meet both of the following conditions:
- Their total balance sheet is greater than the thresholds mentioned in Article 5 of Instruction No. 2016-I-01 determining the thresholds for the application of quarterly information submissions for subject entities, and
- They have direct access to this information, in the absence of outsourcing of their investment management under the conditions defined in Article L. 354-3 of the Insurance Code.
Article 4 Subject parent and participating companies whose group meets the conditions set forth in Article 3 of this Instruction, transmit to the Prudential Control and Resolution Authority the information concerning external ratings and external credit rating agencies defined in Annex III of Implementing Regulation (EU) 2015/2450, solely for the security lines where this information is submitted, on an individual basis under the conditions set forth in Article 3, by the individual entities forming part of the group.
Article 5 This Instruction shall enter into force upon its publication. Done in Paris, January 14, 2016
For the Insurance Sectoral Sub-College The President, [Bernard DELAS]