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Mr Bernardino mentioned strong concerns regarding the stagnant Omnibus II negotiations and their impact on the Solvency II project, mainly about the lack of a clear and credible timetable for the implementation of the new regime.
The current regime (Solvency I) lacks risk sensitivity, restricts the proper functioning of the single market, includes sub-optimal arrangements for the supervision of groups and does not ensure accurate and timely intervention by supervisors. Moreover it is not forward-looking, contains very few qualitative requirements regarding risk management and governance and does not provide supervisors with adequate information on the undertaking’s risks.
Without a robust supervisory system at European level, European supervisors will be forced to develop national solutions in order to ensure sound supervision. The lack of certainty about the implementation is also undermining EU credibility in international discussions as Solvency II is meant as a reference framework for risk insurance based supervision at the international level.
Bernadino therefore urged the political parties involved to come up with a sound and reliable timetable for the implementation of Solvency II as soon as possible.