Contents: Barnier responds, FSA conference Q&A, research, tweets
Commissioner Barnier responds to Solvency II critics
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Q&A from the FSA conference
The FSA published a Q&A document following up on the Solvency II conference held in April this year. Responses are grouped under five sections; listed here with some highlights.- Standard formula, reviews and approvals
- The FSA aims to be open for all applications from 30 March 2012.
- Internal model approval process
- Pre-application is closed; 77 firms have been accepted into pre-application, but the FSA could not say how many will be approved for day one of the Solvency II regime (1 January 2013).
- If a firm is not in pre-application, it should assume that it will not get a decision for day one.
- The FSA stresses that a firm’s application to use an internal model could fail to satisfy the tests and standards set out in the Solvency II Directive. It encourages firms to prepare contingency arrangements should this occur.
- 30 March 2012 to 31 May 2012 will be the application submission window for internal model day one approval.
- Quantitative techniques and tools
- In July 2011 the FSA will release more details on the set of tools for developing an internal model. The tools will help firms earmarked for reduced level of attention.
- External review
- Assuming a decision is made to continue with this particular tool, the FSA will roll out the process for the use of external reviews of data management to all firms in pre-application from July 2011 onwards.
- Policy and implementation timelines
- In January 2012 the European Parliament is expected to vote to finalise the Omnibus II proposals to amend the Solvency II Directive. On this basis, the FSA expects the Commission proposal for the delegated acts to be issued in the first half 2012, along with EIOPA consultation on implementing technical standards.