Insurance Companies Encouraged to Invest in Long-Term Equity by way of Capital Relief
Published 8 October 2021
Category: Investors Regulation
The EU Commission has published a proposal to amend the EU insurance directive (known as “Solvency II”) so that insurance companies can scale up long-term investments – see more here.
As part of the proposal, the EU Commission will introduce in 2022 technical changes to the criteria attached to the long-term equity category in the Solvency II Delegated Act by lowering the risk charges that are attached to insurance companies’ investment in long-term equity, including investment into alternative investment funds.
According to a press release issued by the EU Commission, it is expected the reduction in capital requirements would reach approximately EUR 10.5 billion under a cautious scenario assuming that only 15% of additional equities would qualify as long-term. This would be a decrease of more than 6% compared to current levels for insurance companies which can be further invested in long-term equity.
Next Step: The amendments to the long-term equity category is expected to be adopted during 2022.
Tags: Solvency II
Also tagged ‘Solvency II’
An amendment to the delegated regulation (EU) 2015/35 was adopted by the European Commission 8 March 2019. The legislation includes changes to the risk-weight of certain alternative investments.Risk ManagementSolvency IIVenture Capital
Invest Europe has published a comprehensive members guide on EU ESG reporting requirements for fund managers to clarify grey areas that exist around the day-to-day application of the regulation.ComplianceDisclosure RequirementssustSustainability
Authorized AIFMs shall from 1 August 2022 ensure that their systems, processes, and internal controls reflect relevant sustainability risks as defined in the SFDR.AIFMDComplianceDisclosure RequirementsSustainability
On 31 May 2022, the European Securities and Markets Authority (ESMA) published a supervisory briefing which provides guidance on sustainability risks and disclosures in investment management.Disclosure RequirementsESMASustainability
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.Danish RegulationManagement Remuneration
The RTS will define the new standard for sustainability-related disclosures in the financial services sector in the EU and supplements provisions of the SFDR and of the Taxonomy Regulation.AIFMDComplianceDisclosure RequirementsSustainability