Stakeholders should look beyond asset calibration in the long-term investment debate, according to a European Commission official. Speaking at the 6th Annual Solvency II European Conference of the French Federation of Insurance Companies (FFSA)*, Steve Ryan, Deputy Head of Unit, Insurance and Pensions, European Commission, said that he could foresee a lot of pressure to open the discussion on calibrations for assets in Solvency II well before 2018. This view was confirmed by the French Finance Minister Michel Sapin, in his speech to the conference. The Solvency II Delegated Acts include a provision for reviewing the standard formula SCR calculations by 2018. However, Mr Ryan did not entirely agree with what he called the disproportionate attention given to the question of calibration in the debate about long-term investment. He said that the Commission was taking a much broader approach to the subject. And while he noted that the Commission had already made a major effort on high quality securitisation, and would look at it again, he called on all stakeholders to avoid “fetishizing” this issue. Mr Ryan explained that calibration was not a capital requirement in itself. Because, for example, the calibration of 39% for shares in the lower equity bucket usually translated to a capital charge of less than 20% when taking into account factors such as deferred taxes and diversification. In addition there is a matching factor between assets and liabilities. Mr Ryan revealed that the Commission is working on a Green Paper on Capital Market Union, which may well include a legislative initiative on securitisation.