Can third country insurance companies be considered as unregulated financial entities

Third country insurance/re-insurance companies are eligible for the treatment laid down in Article 153(2) CRR only if they qualify for the definition of large financial sector entity as laid down in Article 142(1)(4) CRR. With regard to the criterion laid down in 142(1)(4)(b) only institutions (i.e. credit institutions and investment firms) established in third countries and territories covered by Annex V of the Commission Implementing Decision No. 2014/908, as amended by the Commission Implementing Decision 2016/2358/EU, can be deemed as fulfilling such criterion. This implies that Insurance and re-insurance undertakings cannot qualify for the application of the AVC scaling factor unless Annex V is amended. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.