European Commission: Solvency II (including “Omnibus II”)
01 October 2015
As part of the Capital Markets Union Initiative, the European Commission adopted a number of amendments to the Solvency II Delegated Act, concerning infrastructure investments, European Long-Term Investment Funds, the equity transitional measure, and Multilateral Trading Platforms.
On 30 September 2015, as part of a package of measures forming part of the Capital Markets Union initiative to remove barriers to investment in the EU, the Commission made a number of amendments to the Solvency II Delegated Regulation:
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The main element concerns infrastructure. ’Qualifying infrastructure investments’ will now form a distinct asset category under Solvency II and will benefit from an appropriate risk calibration, lower than that which would otherwise apply (for example the calibration of the stress factor for such an investment in unlisted equity is lowered from 49% to 30%). This will ultimately lead to a lower capital charge.
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Investments in European Long-Term Investment Funds (ELTIFs) will benefit from the same capital charges as equities traded on regulated markets, lower than that for other equities, bringing them in line with investments in European Venture Capital Funds and European Social Entrepreneurship Funds.
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Equities traded on multilateral trading facilities (MTFs) will also benefit fromthe same capital charge as equities traded on regulated markets.
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A transitional measure for equity investments will be extended to unlisted equities, so that insurers will not suddenly withdraw from equity investments. There is also clarification on how insurers should apply the transitional measure to equities held in managed funds.
Full information
Press release on the Action plan on building a capital markets union
Frequently Asked Questions on the Action plan on building a capital markets union
Frequently Asked Questions on the Solvency II delegated regulation
Amendment to the delegated Act on Solvency II
Amendment to the delegated Act on Solvency II: Annexes
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