Commission Adopts Changes to the Risk-Weight of Certain Alternative Investments (Solvency II)

Published 8 March 2019

PrintCategory: 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.  

Tags:  Risk ManagementSolvency IIVenture Capital


Also tagged ‘Risk Management’

30 Apr 2019Financial Regulation

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 ManagementSustainability

Other updates

19 Sep 2023Financial RegulationUpdates

Proposal to amend the PRIIP Level 1 Regulation

The European Commission has earlier this year published a number of targeted proposals to amend the PRIIP Level 1 Regulation, implementing more modern rules on how a PRIIP Key Information Document (KID) is provided to investors. The proposed changes aim to change the content of the (KID) which must be provided to retail investors before investing.

KID / PRIIPS
19 Sep 2023Impact and ESGUpdates

Status on the CSDD Directive

On 13 September 2023, the Danish Corporate Governance Board published their annual account for 2022-2023. The account contains a status on the CSDD Directive which is still negotiated in the EU.

Sustainability
4 Sep 2023Impact and ESGUpdates

Memo from the Danish Financial Supervisory Authority on periodic reporting

On 30 August 2023, the Danish Financial Supervisory Authority (“DFSA”) published a memo describing the requirements in SFDR art. 11 for periodic reporting.

ComplianceDisclosure RequirementsSustainability
22 Aug 2023Impact and ESGUpdates

New reports on the understanding of greenwashing

The progress reports are a result of a push from stakeholders requesting greater market integrity, investor protection and trusted environments for sustainable investments as sustainability has become an important competitive factor.

ESMASustainability
11 Aug 2023Impact and ESGUpdates

European Sustainability Reporting Standards have been adopted

On 31 July 2023 the European Commission adopted European Sustainability Reporting Standards (ESRS) which are mandatory standards for companies under CSRD to use when reporting on sustainability information.

Sustainability
7 Jul 2023Updates

Revision of the Investment Screening Act has entered into force

On 1 July 2023, a revision of the Investment Screening Act (the “Act”) entered into force. The revision revolves around two areas: public contracts and administrative procedures.

Danish RegulationGovernance