Edition Highlights:

  • The European Commission has amended Directive 2011/16/EU to allow tax authorities access to AML information, procedures, documents and mechanisms for the purpose of monitoring the proper application of Directive 2011/16/EU.
  • The Prudential Regulation Authority has issued a policy statement providing feedback on responses to the financial statements proposals in Chapter 3 of Consultation Paper 17/16.
  • Insurance Europe has published an insight briefing on EU consumer protection rules.

 

Current coverage period: Through Dec. 31, 2016

Note: Anticipated business impact for covered regulations is shown using the following rating legend:       (*Low) (** Medium) (*** High)

 

CURRENT REGULATIONS:

Financial Stability Board (FSB) (**):
FSB consults on proposed guidance to support resolution planning and promote resolvability
Publication Date: December 16th 2016

Regulation Type: Consultation

Category: Prudential

The Financial Stability Board (FSB) has issued for consultation two proposals for guidance on the implementation of its resolution standards which form part of the overall policy framework to end “too-big-to-fail”.1

 

Prudential Regulation Authority (PRA) (**):
IFRS 9: changes to reporting requirements
Publication Date: December 12th 2016

Regulation Type: Consultation

Category: Accounting
The PRA has issued consultation paper CP46/16 to propose changes to regulatory reporting requirements due to the introduction of IFRS 9 from January 1, 2018. Banks and building societies applying International Financial Reporting Standards (IFRS) 9 will be affected by the proposals to change reporting requirements. Comments should be submitted by March 13, 2017.2

 

European Insurance and Occupational Pensions Authority (EIOPA) (***):
Discussion Paper on Potential Harmonisation of Recovery and Resolution Frameworks for Insurers
Publication Date: December 2nd 2016

Regulation Type: Consultation

Category: Prudential
The EIOPA has released a discussion paper on the potential harmonization of recovery and resolution frameworks for insurers. The discussion paper does not contain a formal proposal, but seeks to gather the views of stakeholders. EIOPA would like stakeholders to focus, in particular, on chapter 4, “Building blocks of recovery and resolution” and the specific questions included in that chapter and in chapter 3 “Rationale for harmonisation.” Comments should be submitted by February 28, 2017.3

 

European Insurance and Occupational Pensions Authority (EIOPA) (*):
Discussion Paper on the Review of Specific Items in the Solvency II Delegated Regulation
Publication Date: December 5th 2016

Regulation Type: Consultation

Category: Prudential
The EIOPA has released a discussion paper on the review of specific items in the Solvency II Delegated Regulation. This paper is part of EIOPA’s project dedicated to the review of the Delegated Regulation and the Solvency Capital Requirement (“SCR”) standard formula, in response to the call for advice of the European Commission. Comments should be submitted by March 3, 2017.4

 

European Commission (EC) (***):
Council Directive (EU) 2016/2258 of 6 December 2016 amending Directive 2011/16/EU as regards access to anti-money-laundering information by tax authorities
Publication Date: December 16th 2016
Regulation Type: Regulations

Category: Compliance
The EC has amended Directive 2011/16/EU to allow tax authorities access to anti-money laundering (AML) information, procedures, documents and mechanisms for the performance of their duties, specifically monitoring the proper application and functioning of all forms of administrative cooperation provided for in this Directive.5

 

European Insurance and Occupational Pensions Authority (EIOPA) (**):
Joint Committee Discussion Paper on the Use of Big Data by Financial Institutions
Publication Date: December 19th 2016

Regulation Type: Consultation

Category: Others
The Joint Committee of the European Supervisory Authorities has published a discussion paper within the scope of the adoption of Big Data technologies and how these technologies may change the way financial services are provided. The paper concludes with an overview of the possible evolution of the market (given the data growth potential) and the capacity to use Big Data for competitive advantage. Comments should be submitted on or before March 17, 2017.6

 

Prudential Regulation Authority (PRA) (***):

Financial statements – responses to Chapter 3 of CP17/16
Publication Date: December 12th 2016
Regulation Type: Response to Consultation

Category: Accounting
The PRA has issued a policy statement providing feedback on responses to the financial statements proposals from Chapter 3 of Consultation Paper 17/16 “Regulatory Reporting of financial statements, forecast capital data and International Financial Reporting Standards (IFRS) 9 requirements.”7

 

Prudential Regulation Authority (PRA) (**):
Solvency II: Reporting format of National Specific Templates and reporting clarifications
Publication Date: December 19th 2016
Regulation Type: Response to Consultation

Category: Prudential
The PRA has issued a policy statement providing feedback on responses to Consultation Paper 40/16 “Solvency II: Reporting format of National Specific Templates and reporting clarifications” and setting out final rules to incorporate National Specific Template (NST) information requirements within the Reporting Part of the PRA Rulebook for financial year end 2016 and future financial year ends.8

 

European Insurance and Occupational Pensions Authority (EIOPA) (*):
European Supervisory Authorities respond to European Commission on amendments to PRIIPs rules
Publication Date: December 23rd 2016
Regulation Type: Response to Consultation

Category: Compliance
The European Supervisory Authorities (ESAs) have responded to the European Commission on the amendments the Commission proposes to make to the draft regulatory technical standards (RTS) on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPS). The ESA Chairs have expressed concerns about the credibility of the “moderate” performance scenario if it is either zero or, once costs are taken into account, indicates an expectation of losses over the whole recommended holding period. If the Commission wishes to amend the RTS along the lines it has proposed, one option the ESAs considered was the use of the mean of the distribution of risk free returns, adjusted for dividend yields.9

 

Insurance Europe(IE) (***):

Insight briefing: Better, not more, information for consumers
Publication Date: December 5th 2016
Regulation Type: Report
Category: Compliance
IE has published an insight briefing on European Union (EU) consumer protection rules, supporting effective EU consumer protection rules enabling individuals to compare products and make informed decision. The agency states that EU consumer protection rules should avoid duplication, be future proof, be coherent, consistent and well-designed, since overloading consumers with information could turn them into unhappy customers.10

 

European Insurance and Occupational Pensions Authority (EIOPA) (*):
EIOPA 2016 insurance stress test
Publication Date: December 15th 2016
Regulation Type: Report

Category: Prudential
The 2016 exercise is tailored to assess the insurance sector’s vulnerabilities to a combination of market risk adverse scenarios. It will be based on a sample of solo insurance undertakings most vulnerable in a persistent low interest rate environment and a double hit scenario where, in addition to the low interest rates, the assets prices are also stressed.11

 

Visit www.accenture.com/RegulatoryCompliance for latest insights on regulatory remediation and compliance transformation.

 

References:

  1. “FSB consults on proposed guidance to support resolution planning and promote resolvability,” Financial Stability Board, December 16, 2016. Access at: FSB consults on proposed guidance to support resolution planning and promote resolvability
  2. “IFRS 9: changes to reporting requirements – CP46/16,” Prudential Regulation Authority, December 12, 2016. Access at: IFRS 9: changes to reporting requirements
  3. “EIOPA-CP-16-009 Discussion Paper on Potential Harmonisation of Recovery and Resolution Frameworks for Insurers,” European Insurance and Occupational Pensions Authority, December 2, 2016. Access at: Discussion Paper on Potential Harmonisation of Recovery and Resolution Frameworks for Insurers
  1. “Discussion Paper on the review of specific items in the Solvency II Delegated Regulation,” European Insurance and Occupational Pensions Authority, December 5, 2016. Access at: Discussion Paper on the Review of Specific Items in the Solvency II Delegated Regulation
  2. “Council Directive (EU) 2016/2258 of 6 December 2016 amending Directive 2011/16/EU as regards access to anti-money-laundering information by tax authorities,” Official Journal of the European Union, December 16, 2016. Access at:Council Directive (EU) 2016/2258 of 6 December 2016 amending Directive 2011/16/EU as regards access to anti-money-laundering information by tax authorities
  3. “Joint Committee Discussion Paper on the use of Big Data by Financial Institutions,” European Securities and Markets Authority, December 19, 2016. Access at: Joint Committee Discussion Paper on the Use of Big Data by Financial Institutions
  4. “Financial statements – responses to Chapter 3 of CP17/16 – PS36/16,” Prudential Regulation Authority, December 12, 2016. Access at: Financial statements – responses to Chapter 3 of CP17/16
  5. “Solvency II: Reporting format of National Specific Templates and reporting clarifications – PS38/16,” Prudential Regulation Authority, December 19, 2016. Access at: Solvency II: Reporting format of National Specific Templates and reporting clarifications
  1. “European Supervisory Authorities respond to European Commission on amendments to PRIIPs rules,” European Banking Authority, December 23, 2016. Access at:European Supervisory Authorities respond to European Commission on amendments to PRIIPs rules
  2. “Insight briefing: Better, not more, information for consumers,” Insurance Europe, December 5, 2016. Access at: Insight briefing: Better, not more, information for consumers
  3. 2016 EIOPA Insurance Stress Test Report,” European Insurance and Occupational Pensions Authority, December 15, 2016. Access at: EIOPA 2016 insurance stress test

About the Insurance Monthly Regulatory Tracker

The “Insurance Regulatory Insights” newsletter is the monthly initiative aimed at updating the Finance and Risk community with the most recent regulatory changes impacting insurance firms. We update our comprehensive regulatory database every month by tracking more than 40 regulatory and industry bodies covering North America, Europe and Asia Pacific. Every month, we will highlight approximately 10 regulations shortlisted on the basis of geography of coverage and anticipated business impacts. Our summaries highlight the Regulation Type and business processes affected by the regulatory reforms. This newsletter is planned to supplement the existing newsletter “Regulatory Insights” which provides a deeper analysis of business implications and Accenture’s point of view on a single or much smaller set of regulatory changes.

 

Disclaimer

This blog is intended for general informational purposes only, does not take into account the reader’s specific circumstances, may not reflect the most current developments, and is not intended to provide advice on specific circumstances. Accenture disclaims, to the fullest extent permitted by applicable law, all liability for the accuracy and completeness of the information in this blog and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professional.

About Accenture:

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