EIOPA · 2364
Own Funds (OF)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 73
- Topic
- Own Funds (OF)
- Submitted
- 2021-12-01
- Answered
- 2022-07-31
Question
EIOPA rulebook in respect of Tier 2 own funds provides an exception to the rule that the basic own fund should not allow repayment before 5 years - namely this is subject to regulatory approval and linked to unexpected events (change in applicable tax treatment and dis-recognition of the item for regulatory purposes). However we could not find the basis for exemption in the Delegated Regulations or in the Guidelines of classification of own funds.
Background
sub-debt for an insurance company
Answer
Article 73 Paragraph 5 of the Delegated Regulation provides for an exception to the rule that the basic own fund should not allow repayment before 5 years - namely this is subject to regulatory approval and linked to unexpected events (change in applicable tax treatment and disrecognition of the item for regulatory purposes).
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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