EIOPA · 2137
Solvency Capital Requirement (SCR)
- Regulation
- Other
- Article
- 337
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2020-04-21
- Answered
- 2021-06-11
Question
With respect to the amendment to Article 337 in 2019/981, I have a question on the following extract: 'where a material amount of the consolidated technical provisions or the consolidated group own funds is denominated in a currency other than the one used for the preparation of the consolidated accounts, that currency may be considered as the local currency'. If the entity in question were to be a standalone entity (no applicable Group entity), can I check if the above outlined approach for selecting the local currency (for the purpose of Article 188) would apply?
Background
The confusion arises where the treatments might differ for standalone entities, and entities that would be subject to Group reporting.
Answer
Article 188 (1) of the Delegated Regulation should be used for determining the local currency for the calculation of SCR at solo level, whether by a standalone entity or an entity that is member of a Group. Article 337 identifies the local currency for the consolidated accounts, but does not change the local currency for the solo level SCR of a Group entity.
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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