Question ID: 1570
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 05 Jun 2018
Question
I have a CIC code query with regads to all EDC (Export Development Canada) securities. Bloomberg reflects a CIC code of 21 but this issuer carries the full faith and credit of Canada and constitues direct and unconditional obligations of Canada.
Can you please look into this and advise as we feel it should carry a cic code
of 1 Bloomberg have advised that this is an EIOPA classification and they are just returning the values you assign.
An example of an ISIN code is - US30216BFR87
EIOPA answer
According to the Commission Delegated Regulation (EU) 2015/35 when classifying an asset using the CIC table, undertakings shall take into consideration the most representative risk to which the asset is exposed to. Therefore, the statement that Bloomberg have advised that this is an EIOPA classification and they are just returning the values you assign is not correct. EIOPA is not classifying assets, it is the insurers that should classify assets.
We agree that an asset that is a full faith and credit obligation of a government should be categorised with CIC 1.
Please be aware that for the purpose of determining the capital requirements for spread and market risk concentration under the standard formula, the relevant provisions in the Commission Delegated Regulation (EU) 2015/35 have to be evaluated (which consider factors like rating or the type of issuer (e.g. EU Member State Central Government. The determination cannot be based on the CIC.