The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) issued its first progress report on Supervisory Convergence for the Financial Services Committee (FSC). The paper reports on the activities currently under way within
CEIOPS for enhancing convergence of supervisory practices in the field of insurance and occupational pensions. The current work lays down the foundations for a substantial body of supervisory convergence work that will follow the adoption of the Solvency II Directive, and any subsequent implementing measures.
Besides the work on Solvency, the report describes the areas on which CEIOPS has undertaken concrete action to enhance convergence of supervisory practices and highlights further opportunities for greater convergence. The main areas of convergence relate to:
Supervision of insurance groups
Supervision of occupational pension funds
Supervision of insurance mediators
Implication of accounting on supervision and supervisory reporting.
The report says there are “particular challenges” in the transposition of the pensions directive due to differences at the member state level. “Significant differences between jurisdictions in the legal status and management of the institutions concerned present particular challenges in this area,” the committee said, with regard to the Institutions for Occupational Retirement Provision directive.
The committee will monitor national transpositions and said: “In this context, any need for consistency with the regime applicable to life insurance will be considered.”
A protocol on supervisory cooperation is currently being agreed and should be adopted by the end of the year.
This report emphasises that supervisory convergence is one of the major objectives of the Committee and CEIOPS will continue to pursue opportunities to develop and adopt best practice across jurisdictions, especially in the context of Solvency II.
CEIOPS – along with CEBS and CESR – will be working together to organise an appropriate cross-committee approach to financial conglomerates. This is an urgent issue at this stage where CRD is in the process of being enacted and Solvency II being designed.
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