Solvency II News: Member States call for a second Quick-Fix Directive

Updated: 2 May 2013

23 Member States have asked the Commission to consider a second Quick-Fix Directive for Solvency II. Solvency II Wire has obtained a copy of a letter from the Polish Ministry of Finance to Jonathan Faull, Director General, Internal Market and Services, at the European Commission, which made the request on behalf of the Member States.

The letter, dated 12 April 2013 states (emphasis at source), “Poland, on behalf of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Luxembourg, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom who share similar concerns connected with the implementation of the Solvency II system, would kindly request the European Commission to take the necessary steps and propose a second Quick-Fix Directive to postpone the date of implementation and the date of application of Solvency II.” The first Quick-Fix Directive (2012/23EU passed on 12 September 2012) shifted the transposition date of Solvency II to 30 June 2013 and set its application date to 1 January 2014. In the letter, the Polish Finance Ministry states, “In our opinion the implementation of the Solvency II Directive should take place only once the Omnibus II Directive has been approved and the application date should allow for the delegated acts to be in place. This solution appears to be necessary for the correct functioning of the whole insurance solvency system.” A lack of clarity on the final rules so close to the date of entry into force would cause “unnecessary anxiety” for both industry and national supervisors, according to the letter. “This situation has adverse consequences for the development of the insurance market, especially in difficult economic conditions. It does not seem possible that by the end of 2013, the insurance and reinsurance undertakings would reach readiness to meet all the requirements of the Solvency II Directive (mainly because of the lack of definitive legal solutions).” The letter also states that at the EIOPA Board of Supervisors meeting in March 2013, “representatives of the European Commission informed that the Commission does not intent to present a proposal for a Directive shifting deadlines for implementation and entry into force of the Solvency II Directive, the so-called Quick-Fix Directive 2.”

Update 2 May 2013

The letter is now available online (hat tip Allan). — To subscribe to the Solvency II Wire mailing list for free click here.]]>

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