Commission Adopts Changes to the Risk-Weight of Certain Alternative Investments (Solvency II)
Published 8 March 2019
Category: EuVECA
With trillions (EUR) of assets under management, the insurance sector plays a vital role at the European capital market.
Insurance companies’ investment allocation is closely related to the capital requirements and risk management principles implemented in the Solvency II Directive as well as the delegated regulation (EU) 2015/35 setting out methods, assumptions and standard parameters for calculating the capital requirements.
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; specifically the new legislation introduces a new category of “long-term equity” exposures with a risk-weight of 22% (as opposed to the current risk-weight of 39 % applying to closed-ended and unleveraged alternative investment funds, including venture capital funds that are European Venture Capital Funds (EuVECA), and as opposed to the risk-weight of 49 % applying to unlisted equity in general) provided they meet a series of conditions, including the length of the investment and its geographic location.
See the amended regulation here.
Also tagged ‘Risk Management’
AIFMD 2.0 published in the OJEU
On 26 March 2024, directive 2024/927 amending the directives 2011/61/EU (AIFMD) and 2009/65/EC (UCITSD), also known as AIFMD 2.0, has been published in the EU Official Journal.
AIFMDRisk ManagementProvisional Agreement on the Corporate Sustainability Due Diligence Directive
A provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD) has been concluded between the Council and the European Parliament on 14 December 2023.
CSDDDGovernanceRisk ManagementSustainabilityESMA Submits Report on Sustainability Risks and Factors in the AIFMD and UCITS Directive
On 30 April 2019, the European Securities and Markets Authority (ESMA) published its final report on integrating sustainability risks and factors relating to environmental, social and good governance considerations in the AIFMD and UCITS Directive.
AIFMDESMAGovernanceRegulatory Technical StandardsRisk ManagementSustainabilityOther updates
ESMA consults on proposals to digitalise sustainability and financial disclosures
The European Securities and Markets Authority has published a consultation paper seeking stakeholders’ view on how the European Single Electronic Format can be applied to sustainability reporting for the purpose of easing the burden associated with financial reporting.
ESMARegulatory Technical StandardsSustainabilityNew Q&As on application of Guidelines on funds’ names
ESMA has published Q&As for Guidelines on funds’ names using ESG or sustainability-related terms.
ESMASustainabilityReport on investing for transition benchmarks
The Platform on Sustainable Finance has published a report on Investing for Transition Benchmarks proposing two voluntary benchmark labels.
SustainabilityProposal for categorisation of products under the SFDR
The EU Platform on Sustainable Finance has published a briefing note for the EU Commission outlining how a categorisation system for sustainable finance products could be set up and calibrated.
SFDRSustainabilityRepeal of rules regarding shareholder loans and other amendments to the Danish Companies Act
On 19 December 2024, the Danish Parliament has adopted the amendment acts L71 and L72 regarding amendments to the Danish Companies Act and other Danish laws.
Venture CapitalAbolition of the ‘entrepreneur tax’ and other changes to Danish tax legislation adopted
On 19 December 2024, amendments to the Danish Corporation Tax Act, the Danish Capital Gains Tax Act and the Danish Personal Tax Act, as well as other Danish tax laws, were adopted by the Danish Parliament.
Venture Capital