(i) The Central Bank Publishes the Final Guidelines for the Preparation of Solvency II
On 4 November 2013, the Central Bank published its final Guidelines on Preparing for Solvency II (the "Guidelines"). This follows the European Insurance and Occupational Pensions Authority ("EIOPA")'s publication of their final Guidelines for the Preparation of Solvency II on 27 September 2013. The Central Bank's Guidelines closely reflect EIOPA's Guidelines and are linked to the Central Bank's PRISM risk-based supervisory framework. The objective of the Guidelines is to allow effective and meaningful preparation for Solvency II, so that when Solvency II is applicable, it can be fully complied with.
The Guidelines cover:
- Systems of Governance;
- Forward Looking Assessment of Own Risks;
- Submission of Information;
- and Pre-application for Internal Models.
An individual guideline paper covering each of the above key areas has been published, as well as a general introductory paper to the Guidelines.
The Guidelines will apply to all insurance and reinsurance undertakings except those excluded due to specified size criteria or due to ceasing new business by 1 January 2016. Where an undertaking believes it qualifies for an exemption it will need to notify the Central Bank of the facts that support that conclusion by completing the necessary template set out in the Guidelines. Following receipt of the appropriate template the Central Bank will confirm if it agrees that the undertaking qualifies for the exemption. Where an undertaking is exempted due to ceasing new business it will need to provide an annual confirmation to the Central Bank confirming it still meets the eligibility criteria.
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