Question ID: 649
Regulation Reference: Guidelines on group solvency
Article: 1
Status: Final
Date of submission: 26 Apr 2016
Question
Ancillary services undertakings, are quite frankly not clearly specified in the regulations. The question I personally have is the following: If a group (parent entity) decides to set up a seperate legal entity to execute the following main/principal activity for the group (treasury activities):
- Cash & Collateral management (for all insurance entities)
What would be the classification of such an entity.
EIOPA answer
Ancillary services undertakings are intended to assist the insurance or reinsurance undertakings only (excluding for the benefit of third parties) in the activities specified in the definition provided in Article 1 (53) of the Commission Delegated Regulation (EU) 2015/35, or in similar activities.
The classification should be based on specific features of a particular entity. In case of doubt, any specific classification should be discussed between the group and the group supervisor, with the involvement of relevant national supervisory authorities if necessary (e.g. for the purpose of the calculation of market risk concentration sub-module, according to Article 184(2)(b)(i) of the Commission Delegated Regulation (EU) 2015/35).