Question ID: 1344
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 336, 329, 2.7, 9
Status: Final
Date of submission: 17 Aug 2017
Question
Which capital requirement for credit, investment firms and financial institution should be included when calculating the consolidated group SCR according to Article 336 in the Delegated Regulation 2015/35?
According to DR Article 336 c, the proportional share of the capital requirements for credit institutions, investment firms and financial institutions calculated according to the relevant sectoral rules should be included in the calculation of the consolidated SCR. And DR Article 329.1.a states that the calculation of the group solvency shall include capital requirements and own funds for related undertakings which are credit institutions, investment firms and financial institutions according to the relevant sectoral rules referred to in Article 2.7 of Directive 2002/87/EC (FICOD).
When using Method 1 (according to Solvency 2) when calculating the Solvency 2 group solvency, which capital requirement should be used for related under-takings which are credit institutions, investment firms and financial institutions? Should it be including all requirements and buffers as stated in Article 9 of DR 342/2014 (RTS on capital – FICOD 6 (2))? I e is the capital requirement for OFS the same in the Solvency 2-calculation as when calculating the capital requirement for an insurance-led financial conglomerate? If not, which capital requirement should be used in the Solvency 2 calculation?
EIOPA answer
The capital requirement should be the one as described in article 9 of Delegated Regulation 342/2014, including a requirement arising from the internal capital adequacy assessment process in Article 73 of Directive 2013/36/EU, any requirement imposed by a competent authority pursuant to Article 104(1)(a) of that Directive, the combined buffer requirement as defined in Article 128(6) of that Directive, and measures adopted pursuant to Articles 458 or 459 of Regulation (EU) No 575/2013.
The solvency requirements for the purpose of the calculation of the supplementary capital adequacy requirements should reflect all these requirements and the same should apply to calculate the consolidated group Solvency Capital Requirement of Solvency II Directive .