Regulatory Alerts2017-03-01 | NBB_2017_07Added · Updated
Circulaire NBB_2017_07 / Requirements for the use of the Duration-Based Equity risk sub-module
The National Bank of Belgium establishes specific eligibility criteria and administrative requirements for Belgian insurance and reinsurance undertakings wishing to use the Duration-Based Equity risk sub-module (DBE) within the Standard Formula for the Solvency Capital Requirement. Applicants must demonstrate separate administrative and accounting management, restrict eligible assets to the Belgian portfolio, and justify liquidity and prudent investment policies under stress scenarios. The circular outlines a mandatory prior approval procedure requiring a complete application dossier, with the Bank committing to a decision within three months of receiving a complete submission. Additionally, it clarifies that the transitional measure under Article 666 of the Law can be applied optionally without prior approval, provided the relevant equity portfolio is distinctly identified and reported.
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