Solvency II , the European regulation that aims to create a level playing field in the insurance sector in the European union has been in planning for nearly 13 years to date.
Originally planned for implementation in 2012, it has been plagued with delays on a number of occasions. The most recent of which was in September 2012. This was related to many issues , including Long Term Guarantees & Equivalence . Much debate and discussion in the market questioned it as a regulation, that could or would be implemented.
Late last night the 13th November 2013, saw what was likely to be the final chance for the European Commission, Parliament and ECON to find agreement in the Omnibus II trilogue. Finally, after 8 hours of discussion, word came from Brussels that Solvency II had been agreed by the parties involved.
The final step will now take place on the 24th February 2014, when a plenary vote will be held in parliament. This will be expected to pass, as it is almost unheard of for parties to vote against what has been agreed in trilogues.
The focus will now move for insurance firms to implementation in 2016, with most firms beginning dry runs in 2014. The impact on other industry parties should be noted. Asset managers and their third party administrators will in the coming months be required to begin the process of providing the fund asset data look-through required by their insurance investors to comply with Solvency II. This will be one of the most challenging issues to be addressed by these parties in the coming year, both for the funds industry and even more so the fund-of-fund and fund of hedge fund sides.
Filed under: asset management, insurance regulation, regulation, Solvency II Tagged: Omnibus II, regulation, Solvency II, Trilogues
