Regulatory Alerts2025-06-09
GFSC Guidance Note on Solvency 2 Own Funds
The Gibraltar Financial Services Commission issued this guidance to clarify expectations for insurance and reinsurance undertakings regarding the classification and approval of own funds under Solvency 2. The document mandates that ancillary own funds must be callable on demand and reflect prudent loss absorbency, while requiring firms to ensure their articles of association allow for the cancellation or deferral of dividends to maintain Tier 1 and Tier 2 status. Additionally, it outlines strict criteria for pre-issuance notifications, permitting reduced notice periods only in exceptional circumstances where a firm faces imminent non-compliance with capital requirements.
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