Question ID: 1561
Regulation Reference: Risk-Free Interest Rate - General questions
Article: 43
Status: Final
Date of submission: 26 Jun 2018
Question
I have a few of questions regarding the implementation of the ultimate forward rate (UFR).
(1) Q: Does the European Commission or Parliament have to adopt and publish an Implementing Act that approves of the methodology proposed by EIOPA, or is EIOPA’s proposal legally binding?
(2) Q: Does the European Commission or Parliament have to adopt and publish an Implementing Act that formalises the 4.05% for 2018? In other words: is the 4.05% legally binding for 2018?
(3) Q: If Implementing Acts are required, is there a fixed timeline for (when) these Implementing Acts to be published? E.g. the first day after a calendar quarter?
EIOPA answer
As the question is of legal nature, we asked the European Commission to provide response with the following result:
The answer to all questions is no. Please refer to article 77e(2) of Directive 2009/138/EC (Solvency II).