EIOPA · 2276
Solvency Capital Requirement (SCR)
- Regulation
- Guidelines on look-through approach
- Article
- Art. 84.4 amending Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2021-04-09
- Answered
- 2021-08-18
Question
With respect to the mentioned article, there are two possible interpretations:
- A look-through approach can be applied to interests in related undertakings when the listed requirements are met.
- It is only possible to apply look-through approach to investment undertakings related when they do not meet the listed requirements. Could you indicate which is the correct interpretation?
Answer
There are two cases:
1. Investments in related undertakings which are “collective investment undertakings and other investments packaged as funds":
A look-through approach shall apply when calculating the Solvency Capital Requirement.
2. Investments in related undertakings which are not “collective investment undertakings and other investments packaged as funds"
A look-through approach shall apply to market risk, underwriting risk, and counterparty risk where the conditions listed in Article 84(4) of the Commission Delegated Regulation (EU) 2015/354 are met.
Where any of the conditions are not met, a look-through approach shall not be applied.
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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