Question ID: 1377
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 199
Status: Final
Date of submission: 01 Jul 2018
Question
As per regulation 'Type 1 exposures shall consist of exposures'
1) Cash at bank and in hand. Meaning all items with CIC CODE 71?
2) Deposits with ceding undertakings. Meaning all items with CIC CODE 72?
3) Shall the look-through assets with CIC codes 71 & 72, be inlcuded in the Counterparty default risk? For example if i consider a Bond Fund 'A' with 10 underlying assets having CIC code 71, and 72, should someone include the sum of these 10 assets with counterparty name 'A'?
4) Generally which categories of category 7 (Cash and deposits) shall be included? (i.e 71,72,73,,,)?
EIOPA answer
1. Transferable deposits (cash equivalents) CIC 72. Please note that cash at hand is not a type 1 exposure.
2. CIC75
3. EIOPA confirms that according to article 84 (1)(c) the look-through approach is applied to counterparty exposures.
4. Please see answer 1.