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’
ESMA 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
CSRD has been Passed by the European Parliament
The European Parliament has passed the Corporate Sustainability Reporting Directive (“CSRD”). CSRD replaces the Non-Financial Reporting Directive (“NFRD”), and introduces higher requirements of more detailed reporting, and a mandatory EU sustainability reporting standard.
ComplianceSustainabilityProhibition of Products Made with Forced Labour on the EU market
The European Commission has proposed a prohibition on making products made with forced labour available on the EU market as well as exporting such products from EU. The proposal shall be seen in connection with the proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) adopted by the European Commission in February.
Invest Europe ESG Reporting Guidelines: Setting the Industry Standard for ESG Reporting
Invest Europe has published a set of ESG reporting guidelines with the aim of providing user-friendly and advanced guidelines on sustainability reporting within the European private capital sector.
SustainabilityReview of SFDR Article 9 Funds by the Swedish FSA
The Swedish Finansinspektionen has reviewed 30 Swedish-registered UCITS- and special funds with sustainable investment as their goal (SFDR article 9 funds). Finansinspektionen analyzed how fund managers met the requirements for providing sustainability-related information to investors.
SustainabilityThe Application of New Rules on KID’s Postponed to 1 January 2023
On 6 September 2021, The EU Commission amended the EU delegated regulation for the presentation of the Key Information Document (“KID”).
KID / PRIIPSNew Guide on SFDR and EU Taxonomy Regulation
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 RequirementsSustainability