The updated strategy includes new relevant initiatives that will contribute to achieve the overall goals of the Project:

1. Professional secrecy/confidentiality

Objective: Promote the free flow of information between EU and U.S. supervisors under conditions of professional secrecy by removing the barriers to the exchanges of information.

2. Group supervision

Objective: Establish a robust regime for group supervision, under which there is:

a clear designation of tasks, responsibilities and authority1 amongst supervisors, including a single group/lead supervisor;

a holistic approach to determining the solvency and financial condition of the group that is consistent with the way companies manage their business, that avoids double counting of regulatory capital and that monitors risk concentrations, considers all entities belonging to the group and is complementary to solo/legal entity supervision;

greater cooperation and coordination amongst supervisory authorities within colleges; and

efficient enforcement measures at the group and/or solo level that allow for effective supervision of groups.

3. Solvency and capital requirements

Objective: Further develop an approach to valuation which more accurately reflects the risk profile of companies, is sufficiently sensitive to changes in that risk profile and which has capital requirements that are fully risk-based, based on a clear and transparent calibration and that cover similar categories and subcategories of risks to which companies are exposed.

4. Reinsurance and collateral requirements

Objective: Work to achieve a consistent approach within each jurisdiction and examine the further reduction and possible removal of collateral requirements in both jurisdictions in order to ensure a risk-based determination for all reinsurers in relation to credit for reinsurance.

5. Supervisory reporting, data collection and analysi

Objective: Pursue greater coordination in relation to the monitoring of the solvency and financial condition of solo entities and groups through the analysis of supervisory reporting. The exchange of information is facilitated by the joit exchange of best practices for analysis and an evolution towards a greater consistency of reporting.

6. Peer reviews

Objective: Ensure the consistent application of prudential requirements and commitment to supervisory best practices through different peer review processes that ensure an independent view of the jurisdiction being examined.

7. Independent third party review and supervisory on-site examinations

Objective: Ensure consistency and effectiveness in the supervision of solo entities and groups.

As part of its strategy to involve different stakeholders, the Project is going to organise a public event dedicated to the evolution in group supervision. The event will take place on 25 October 2014 in Amsterdam and will provide a platform for opinion exchange among key regulatory and industry representatives from both sides of the Atlantic.  During one of the panel discussions the Steering Committee members are going to discuss the Way Forward, achievements and next steps of the Project.

 

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