EIOPA Publishes Supervisory Statement On Use Of Third Country Branches

EIOPA has published its supervisory statement on the use of governance arrangements in third countries to perform functions or activities, as well as a feedback statement (links below).

As many insurance industry participants would have expected, EIOPA has not made significant amendments to the draft text included in its consultation paper on this topic, published in July 2022.

The key provisions of the supervisory statement remain unchanged, as EIOPA states that:

• the purpose of a branch of an undertaking or intermediary should be primarily to serve the market in which it is established, so third country branches established with the sole objective of supporting insurance undertakings and intermediaries based in the EU should be avoided;