<![CDATA[The timing of the impact assessment on the long-term guarantees (LTG) package dominated discussions at the political trilogue on 18 September. The meeting was attended by both Commissioner Barnier and Gabriel Bernardino, Chair, EIOPA. Several options were discussed including a proposal by Mr Barnier to postpone implementation by one year, however the outcome of the discussions was inconclusive. Informal discussions are set to carry on until the next political trilogue, which is provisionally scheduled for 1 October. Stefaan De Rynck, Commission Spokesperson, said, “Commissioner Barnier discussed with the European Parliament and Council the issue of the study on the impact of solvency rules on long term investment [LTG]. In an attempt to make progress he mentioned that one scenario could be to wrap up the negotiations between Council and Parliament immediately after the study becomes available early in 2013.” Yesterday (19 September) an EU official said the main issue was whether the assessment should be carried out ex-post, with a relatively longer observation period, or ex-ante, in which case the observation period would be shorter but a decision on the guarantees would have to wait until March 2013. “The implementation date for Solvency II will inevitably depend on which of these two approaches is retained,” the official said. According to the source, the Commission indicated, “its thinking on the issue had evolved,” given that an ex-ante approach would not necessarily imply a delay in implementation in the long run”. The Council favoured an ex-post approach, but it was noted that the presidency may seek to review this position in the intervening period. The Parliament did not take a position at this stage, as it would seem that their rapporteur and shadow rapporteur have not yet agreed on which line to take, the source added. Unverified reports suggest the Commission was asked to look at the implementation timetable, which could include a change of implementation date to January 2015. Details of the impact assessment, first revealed by Solvency II Wire on 12 July 2012, can be found here.]]>
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