Question ID: 1315
Regulation Reference: (EU) No 2015/2011 - lists of regional governments & local authorities, exposures to be treated as to central government
Topic: Solvency Capital Requirement (SCR)
Article: 260
Status: Final
Date of submission: 11 May 2017
Question
How can the assessment and validation can be performed after the initial qualification?
Background of the question
EIOPA-BoS-15-223, p.53: “The requirements need to be satisfied on an ongoing basis in order to ensure that the SCR treatment continues to be appropriate.“
EIOPA answer
Generally, the undertaking should have a policy setting out the actions to be taken by the undertaking to ensure that its investments take into account among others, its solvency position, approved risk tolerance limits or long term exposure (Art. 260 Commission Delegated Regulation (EU) 2015/35).
For qualifying infrastructure investments, the ongoing monitoring requirements in Art. 261a(2)-(4) would apply.
Where proportionate, it may be relevant upon recalculation of the SCR or upon the occurrence of relevant changes (e.g. based on the additional data after holding the investment for a year), to review the assessment.