Gibraltar Consults Industry On Solvency II Oversight
by Jason Gorringe, Lowtax.net, London
29 November, 2016
Gibraltar's financial services regulator, the Gibraltar Financial Services Commission, has proposed changes to the disclosure and reporting rules for insurers.
The proposals have been prompted by the European Union's Solvency II Directive, which codifies and harmonizes insurance regulation across EU member states. Pillar 3 of Solvency II came into effect on January 1, 2016, and requires firms to satisfy certain reporting requirements.
Firms impacted by Solvency II include EU insurance companies and their service providers, including auditors, insurance managers, and individuals or firms who are likely to make use of reports prepared by insurance companies.
The Commission has put forward two proposals to ensure insurance firms satisfy the Solvency II reporting requirements. Under the first proposal the Commission will request every insurance company to have a professional services firm undertake a "skilled persons" review and to produce a "review and recommend" report across the relevant elements of their Pillar 3 reporting obligations.
The second proposal, which the Commission believes is the most cost effective, involves the Commission engaging the services of a single professional services firm to review the relevant elements of Pillar 3 reporting across the whole of the insurance market. This would be carried out in conjunction with some of the Commission's permanent staff members. A special levy would be imposed to cover the costs of the external provider.
Interested parties are invited to comment on the two proposals. The consultation period will close on December 5, 2016.
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