Question ID: 2364
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Topic: Own Funds (OF)
Article: 73(5)
Status: Rejected
Date of submission: 01 Dec 2021
Question
EIOPA rulebook in respect of Tier 2 own funds provides an exception to the rule that the basic own fund should not allow repayment before 5 years - namely this is subject to regulatory approval and linked to unexpected events (change in applicable tax treatment and dis-recognition of the item for regulatory purposes). However we could not find the basis for exemption in the Delegated Regulations or in the Guidelines of classification of own funds.
Background of the question
sub-debt for an insurance company
EIOPA answer
Article 73 Paragraph 5 of the Delegated Regulation provides for an exception to the rule that the basic own fund should not allow repayment before 5 years - namely this is subject to regulatory approval and linked to unexpected events (change in applicable tax treatment and disrecognition of the item for regulatory purposes).