The following Financial Services guidance note Produced in partnership with a member of a leading accounting firm provides comprehensive and up to date legal information covering:
Directive 2009/138/EC (SII Directive) was adopted by the Council of the European Union (EU) and the European Parliament in November 2009 and refers to measures which form part of a comprehensive review of the capital adequacy regime for insurance firms in the EU. Implementation of Solvency II was postponed until 1 January 2016 due to on-going legislative negotiations on Directive 2014/51/EU (Omnibus II), which would revise parts of Solvency II.Directive 2009/138/EC
Quantitative capital requirements make up the first ‘pillar’ of the three-pillar regulatory framework established under the SII Directive. Although the word ‘pillar’ does not appear in the Directive itself, it is used in both Regulation 2015/35 (SII Regulation) and the text of Guidelines developed by the European Insurance and Occupational Pensions Authority (EIOPA). ‘Pillar 1’ is part of the widely accepted taxonomy of the Solvency II framework, referring to the harmonised valuation and risk-based capital requirements that it implements.
The requirements of the Solvency II framework are set out in principle in the SII Directive and in detail in the SII Regulation; however extensive detail is also provided in the SII Directive as to some aspects of Pillar 1, and reference needs to be had to both documents. It should be noted that detail in the SII Directive is sometimes superseded by more restrictive detail in the SII Regulation. In addition, the legislative architecture includes Implementing Technical Standards, in the form of Regulations, drafted by EIOPA and issued by the European Commission. These prescribe harmonised requirements go in to further detail in a number of respects, for example where supervisory
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