EIOPA · 1852

Solvency Capital Requirement (SCR)

Name: Solvency Capital Requirement (SCR): EIOPA Q&A — EU Financial Regulatory Q&A
Creator: European Insurance and Occupational Pensions Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
Article: 187
Topic: Solvency Capital Requirement (SCR)
Submitted: 2019-02-08
Answered: 2021-06-25

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Question

Article 187(1) refers to covered bonds described in Article 52(4) of Directive 2009/65/EC.This definition is unclear to us. Do covered bonds need to be bonds issued by a credit institution which has its registered office in a Member State? Or would bonds issued by third-country public sector entities also qualify (as is the case for Basel 3).

Background

Covered bond definition

Answer

Bonds issued by third-country public sector entities cannot qualify as covered bonds as referred to in Article 187 (1) of the Commission Delegated Regulation (EU) 2015/35.

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