COMMENT

Home » Knowledge Base » Road to Solvency II » Five action points for supervisors
COMMENT
Comments are closed.
Archive
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | |||
5 | 6 | 7 | 8 | 9 | 10 | 11 |
12 | 13 | 14 | 15 | 16 | 17 | 18 |
19 | 20 | 21 | 22 | 23 | 24 | 25 |
26 | 27 | 28 | 29 | 30 |
ABI analysis asset allocation Basel III bonds climate-risk Comment counter-cyclical premium Data EIOPA Equivalence European Commission European Parliament Extrapolation FSA Groups IAIS Illiquidity Premium implementation Insurance Europe Interim measures Internal model Investment Level 2 look-through LTG Matching adjustment MCR Omnibus II ORSA Pillar I Pillar II PIllar III Proportionality QRTs Regulation Reporting SCR SFCR Solvency II standard formula Stress test timeline trilogue XBRL
Copyright © 2023 Solvency II Wire
“Solvency II is a shift from a rules based regulation to a principles based regulatory regime”
Interesting to see that is the perspective from outside of the UK.
Because from a UK perspective the shift is entirely in the opposite direction – comparing the very detailed rules around the matching adjustment to the current principles based approach in Individual Capital Assessment being one obvious example.
I would think the biggest issue the UK regulator would face would be their inability to use regulatory discretion in interpreting much of Solvency II – for example Julian Adams speech in December where he said the PRA “will not be reproducing or providing significant interpretation or elaboration of European legislative or regulatory material. Indeed, we are not entitled to do so”.
Paul,
It is reasonable for Herr Hufeld of the German regulator to write from a German perspective. Solvency II is intended to be harmonising legislation, so different countries and their industries and regulators have different tasks ahead. In the UK, I believe that we have to accustom ourselves to both detailed rules about capital requirements calculations and the principles that underpin them.
I agree that a more helpful approach from the PRA would be welcome, especially during what is a “preparatory phase”.