Annex III: Resolution of comments Summary of Comments on Consultation Paper EIOPA-CP-14/048 CP-14-048-GL on third-country branches EIOPA would like to thank Insurance and Reinsurance Stakeholder Group (IRSG), Association of Bermuda Insurers and Reinsurers (ABIR), CFO Forum and CRO Forum, Federation of European Accountants (FEE), Insurance Europe, International Underwriting Association of London (IUL), Life Insurance Corporation of India - UK Branch (LICI UK), and The American Insurance Association (AIA). The numbering of the paragraphs refers to Consultation Paper No. EIOPA-CP-14/048. No. Resolution Name Reference Comment 1. IRSG General Although it is clear that the Solvency II Directive is not very specific Disagreed Comment about how third country branches have to be dealt with, the IRSG These draft guidelines believes that the draft adds many new requirements which can be intend to develop a questioned on legal grounds as it appears that EU legislation is being comprehensive supervisory framework extended to third country undertakings. for branches consistent There is concern over unintended consequences in terms of possible with Solvency II and in retaliation by third country jurisdictions: large part are therefore directed at supervisory - the nature of the requirements may lead to retaliation by third authorities and their country supervisory authorities against branches of EU undertakings supervision practices in their jurisdictions; which is not the same as - if the same requirements (such as annual and quarterly reporting, imposing new laws. All approval of key persons and the localisation of assets) were to be requirements are requested everywhere, this would add significantly to the costs of EU transposed from undertakings with branches in third countries. Solvency II requirements for undertakings. In the case of reporting requirements the directive allows for supervisory authorities to obtain such information as they
Annex III: Resolution of comments Summary of Comments on Consultation Paper EIOPA-CP-14/048 CP-14-048-GL on third-country branches EIOPA would like to thank Insurance and Reinsurance Stakeholder Group (IRSG), Association of Bermuda Insurers and Reinsurers (ABIR), CFO Forum and CRO Forum, Federation of European Accountants (FEE), Insurance Europe, International Underwriting Association of London (IUL), Life Insurance Corporation of India - UK Branch (LICI UK), and The American Insurance Association (AIA). The numbering of the paragraphs refers to Consultation Paper No. EIOPA-CP-14/048. No. Name Reference Comment Resolution 1. IRSG General Comment Although it is clear that the Solvency II Directive is not very specific about how third country branches have to be dealt with, the IRSG believes that the draft adds many new requirements which can be questioned on legal grounds as it appears that EU legislation is being extended to third country undertakings. There is concern over unintended consequences in terms of possible retaliation by third country jurisdictions: - the nature of the requirements may lead to retaliation by third country supervisory authorities against branches of EU undertakings in their jurisdictions; - if the same requirements (such as annual and quarterly reporting, approval of key persons and the localisation of assets) were to be requested everywhere, this would add significantly to the costs of EU undertakings with branches in third countries. Disagreed These draft guidelines intend to develop a comprehensive supervisory framework for branches consistent with Solvency II and in large part are therefore directed at supervisory authorities and their supervision practices which is not the same as imposing new laws. All requirements are transposed from Solvency II requirements for undertakings. In the case of reporting requirements the directive allows for supervisory authorities to obtain such information as they
Final%20Report%20on%20the%20public%20consulation%20CP-14-048%20Guidelines%20on%20third%20country%20branches.docx