EIOPA · 1729
1729
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 204
- Submitted
- 2018-11-11
- Answered
- 2019-09-12
Question
My question is about the "Exp UL" item within the Operational risk formula set in Art. 204 of the delegated regulation 2015/35.In managing our unit-linked business, we use to withdraw regular management fees from the units value and, at the same time, we release a certain percentage of theese commissions to the sales network. Therefore, these monetary amounts represent the portion of revenues belonging to distributors, and not to our undertaking.The question is: shall we consider theese ceded fees as part of Exp UL?
Answer
The commissions to the sales force should be a part of the ExpUL for the purpose of calculating the capital requirement for operational risk.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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