Question ID: 1389
Regulation Reference: Risk-Free Interest Rate - Extrapolation
Article: 46
Status: Final
Date of submission: 24 Apr 2018
Question
In the document "Frequently Asked Questions & Answers,THE ULTIMATE FORWARD RATE" (05 April 2017) it was said that "The European Commission may adopt and consequently publish implementing acts which set out the technical information for each relevant currency."
Has this step already been taken? If not, when do you expect this step to be taken?
EIOPA answer
EIOPA will apply the new UFRs from 1 January 2018 onwards in its monthly publication of risk-free interest rate term structures. The European Commission is currently adopting implementing acts on the risk-free interest rates on a quarterly basis, covering all reference dates from the last day of a quarter up to the day before the last day of the following quarter.
According to that rhythm, the first implementing act that could be based on the new UFRs is the act that sets out the rates for 31 March 2018 onwards. The act that would be adopted before sets out the rates for 31 December 2017 onwards and would be still based on the old UFRs.