Solvency II News: Parliament unlikely to object to Solvency II Delegated Acts

[updated 24.11.2014]
It is unlikely the European Parliament will request to extend the objection period to the Solvency II Delegated Acts, two separate sources close to the Parliament’s negotiating team told Solvency II Wire. The negotiation team is due to meet on 3 December 2014 to agree its final position on the matter. Both sources said that a clear majority against requesting the extension was emerging among members of the team. Until recently it was believed that the European Parliament might use the full objection period (3 months plus an extension of 3 months), during which it could either accept or reject the text in its entirety. Such an objection would impact the already tight Solvency II implementation timeframe, as Member States have to transpose the Level 1 text by 1 April 2015. Both the Parliament and Council have a right to object to the text. If neither objects, it enters into force. The Council’s position is as yet unclear, but informal reports suggest it has not raised any objections to date. Since the publication of the Delegated Acts by the European Commission on 10 October industry has been calling on politicians to avoid any further delays in the process. Instead attention is now being diverted to the review and assessment process built into the regulation. The first of these is a review of the Standard Formula calibrations in 2018. In June Solvency II Wire reported that a separate EP source said they did not foresee major resistance from the Parliament to the Delegated Acts. If the full objection period is used this could mean the text would only be adopted on 9 April 2015, eight days after the transposition date set in the Directive (1 April 2015). It is not clear what the implications for the timeline will be.
[update 24.11.2014]
A note published by the Council on 20 November 2014 recommends that it does not raise objection to the Delegated Acts. The note states that no objection was raised during the initial period after the Delegated Acts were published. “It is therefore suggested that Coreper recommend that the Council confirm that it has no intention to object to this delegated act and that the Commission and the European Parliament are to be informed thereof. This implies that, unless the European Parliament objects to it, the delegated act shall be published and enter into force in accordance with the Solvency II Directive.” (emphasis added) According to the note Hungary was the only Member State that asked for an extension.]]>