Regulatory Alerts2015-11-11
Added · Updated
Commission Implementing Regulation (EU) 2015/2012 on procedures for capital add-ons under Solvency II
The European Commission establishes implementing technical standards governing the procedures for supervisory authorities to set, calculate, and remove capital add-ons for insurance and reinsurance undertakings under Directive 2009/138/EC. The regulation mandates that authorities notify undertakings of their intention to impose a capital add-on and allow for a response period before a final written decision is issued. It requires undertakings to calculate the add-on according to authority specifications, provide necessary information by set deadlines, and submit progress reports on remedying deficiencies when requested. Additionally, supervisory authorities must review and potentially maintain, change, or remove capital add-ons upon material changes in circumstances, notifying the undertaking of any such decisions without delay.