Regulatory Alerts2016-02-02
Added · Updated
Solvency II: Subordinated Tier 1, Tier 2 and Tier 3 instruments
Insurance companies are not required to obtain prior supervisory assessment for subordinated liabilities to be designated as Tier 1, Tier 2, or Tier 3 capital, though instruments may be assessed retrospectively. The DNB encourages institutions to present intended share issues beforehand to determine qualification, noting that such preliminary assessments do not constitute formal approval and instruments may still be disqualified later. Institutions opting for prior discussion must perform a self-assessment and provide specific documentation, with a usual turnaround time of four weeks for the assessment.