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A seventh revision of the EU Presidency compromise text for the proposed Omnibus II Directive was released on the 21 September 2011, which further develops the amendments to the existing Solvency II Directive proposed in the original Omnibus II which was released in January 2011.
The seventh revision text includes further details on the areas for which companies shall be required to provide information as part of their implementation plans to be submitted to regulators in the period prior to full adoption of Solvency II. Under the current proposal, companies would have to provide information on their state of preparedness regarding (inter alia):
- the calculation of capital requirements;
- the valuation of assets and liabilities;
- the adaptation of processes and procedures for supervisory reporting and public disclosures; and
- the adaptation of a system of governance, including the Own Risk and Solvency Assessment.
While the European Council and the European Parliament now propose that companies have until 1 January 2014 to comply with Solvency II, companies will need to submit an implementation plan to their regulators in 2013. The precise date that such an implementation plan should be submitted has yet to be agreed.
It is expected that the Central Bank will update its position in light of the revised draft text for Omnibus II, which should provide further clarity for companies as to the expected timeframe for implementing Solvency II plans.
A copy of the latest compromise text (Document Number: 14485/11) is available on the Council's website: www.consilium.europa.eu .
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