MEPs told the Commission that it was bound by the political agreement and that the principle of proportionality must be followed through in the implementing measures. "The European Parliament attaches great importance to seeing the principle of proportionality translated in the delegated acts", said Burkhard Balz, German MEP and the Omnibus II rapporteur. "We cannot allow small and medium-sized companies to be squeezed out by measures they cannot possibly comply with."
The scope and cost-effectiveness of the reporting requirements is one of the areas the parliament is expected to scrutinise closely. As part of the trilogue agreement on Omnibus II, MEPs included an article in the Directive that gives supervisory authorities leeway to exempt certain firms from reporting their asset portfolios on an item-by-item basis within the quarterly reporting requirements. This would be available to those firms that do not account for more than 20 per cent of the local market Firms with less complex business models are also expected to be allowed to undertake simplified calculations to determine their solvency capital requirement under the standard formula as well as the value of their technical provisions.
It is understood that the level II draft being used as the basis for informal discussions between the Commission and the co-legislators includes some proportionality proposals in these areas. Experts also say that the Commission might address concerns about the proportionality of supervisory action, in particular about the use of capital add-ons.
French MEP Sylvie Goulard warned that the parliament's attention is not going to fade away after the European elections in May. "We do not know who will be sitting here in the next term, but I am sure the parliament will keep a close eye to ensure that the principle of proportionality is carefully translated in the delegated acts."
In response, European Commissioner Tonio Borg promised to work closely with the Parliament to achieve a wide consensus on the proposals. "Important principles such as the principle of proportionality, which is dear to this parliament, will be duly reflected in the delegated acts", he assured.
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