Regulatory Alerts2017-06-08
Added · Updated
Commission Delegated Regulation (EU) 2017/1542 amending Delegated Regulation (EU) 2015/35 on regulatory capital requirements for infrastructure corporates
The European Commission amends Delegated Regulation (EU) 2015/35 to introduce a distinct asset class for qualifying infrastructure corporate investments, allowing insurance and reinsurance undertings to apply lower risk calibrations. The regulation defines infrastructure assets and entities, requiring that the substantial majority of revenues derive from owning, financing, developing, or operating such assets in the EEA or OECD. It establishes specific criteria for debt and equity investments, including credit quality steps, security arrangements, and stress testing requirements, while setting capital charges such as a 22% decrease for strategic equity investments and specific risk factors for bonds and loans based on duration and credit quality.