09 December 2008

CEIOPS interim report on supervisory powers

CEIOPS issue the second part of its interim work on EU supervisory powers and objectives "Preliminary Findings on Supervisory Powers".

The findings include the following:

Ø       In general there is significant harmonisation across European supervisory authorities regarding powers related with the “Taking-up of business and licensing of insurance and reinsurance undertakings”.

Ø       There is a reasonable level of harmonisation in powers relating to the “On-going activity” of supervisory authorities in European supervisory authorities.

Ø       Broadly there is significant harmonisation across Member States in powers relating to compliance with prudential rules, with the large majority of supervisory authorities having powers of this type.

Ø       Rule making is the category of supervisory powers with the lower level of harmonisation. The extent of the power to lay down rules, as well as which authority holds the power varies on a country to country basis with little or no consistency.

Ø      The administrative measures are significantly disharmonised among European supervisory authorities and therefore it is not possible to identify a consistent pattern. However, some of the powers will be harmonised via Solvency II.

Ø       The power to impose sanctions on undertakings or persons in case of non-compliance with rules not directly related with the insurance business, such as fiscal sanctions or requirements on listed companies, is held by a minority of supervisory authorities.

Ø       In most of the supervisors that answered the questionnaire the power is only applicable in some specific situations. There are 8 supervisory authorities that do not hold the power at all, neither for undertakings, nor for individual persons.

Report

© CEIOPS