Question ID: 2629
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Topic: Reporting Templates, Intra-group transaction
Article: 35 of SII Directive
Template: S.36.01
Status: Final
Date of submission: 02 May 2023
Question
Based on the already answered Q&A #708 and #1610 regarding the reporting of IGT in S.36.01, we need a more detailed clarification on the term “transaction” as mentioned in the ITS. For our understanding, a transaction is the transfer of debts, equity, cash etc in the year of reporting. We do not consider data on holdings, such as participations, for which no transfer took place in the year of reporting, to be part of the definition of a transaction. Please provide us with clarification as to whether our interpretation is correct.
Background of the question
We are currently in discussion with the local regulator on how exactly to report this template.
EIOPA answer
Article 13(19) of Solvency II Directive defines 'intra-group transaction' as : “means any transaction by which an insurance or reinsurance undertaking relies, either directly or indirectly, on other undertakings within the same group or on any natural or legal person linked to the undertakings within that group by close links, for the fulfilment of an obligation, whether or not contractual, and whether or not for payment. “
In Annex II of the Commission implementing regulation (EU) 2015/2450, it is further specified that:
The purpose of this template is to collect information according to Article 265 of Directive 2009/138/EC on all (significant, very significant and transactions required to be reported in all circumstances) IGTs related to equity, debt, reciprocal financing and asset transfers related transactions within a group according to Article 213 (2)(d) of Directive 2009/138/EC. These include, but are not limited to:
— equity and other capital items including participations in related entities and transfer shares of related entities of the group;
— debt including bonds, loans, collateralised debt, and other transactions of similar nature e.g. with periodic pre–determined interest or coupon or premium payments for a pre–determined period of time.
— other asset transfer such as transfer of properties and transfer of shares of other companies unrelated (i.e. outside) to the group.
The insurance undertaking is expected to complete this template for all significant, very significant and transactions required to be reported in all circumstances for IGTs between the individual undertaking and the mixed–activity insurance holding company and its related undertakings.
This template shall include IGTs that were:
— in–force at the start of the reporting period.
— incepted during the reporting period and outstanding at the reporting date.
— incepted and expired/matured during the reporting period.
This template shall therefore include all intragroup transactions that are in-force at the start of the reporting period and incurred in the reporting period. This would apply to participations.
Even if there is no movement/transfer related to an IGT in the reporting period, this is still to be reported.