EIOPA · 2485
Solvency Capital Requirement (SCR)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII), (EU) No 2015/2011 - lists of regional governments & local authorities, exposures to be treated as to central government
- Article
- Article 1 of Commission Implementing Regulation (EU) 2015/2011; Article 180(2) of the Delegated Regulation (EU) 2015/35
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2022-09-12
- Answered
- 2022-11-17
Question
Which SCR ratio should be applied to CADES bonds ? CADEs is treated as a central government agency but is not explicitely guaranteed by the french government even if under control of french parliement ? Thanks for your answer
Answer
For the calculation of the spread risk and market concentration risk sub-modules, bonds issued by public entities should be treated as central government bonds only if:
the entity is a regional government or local authority listed in Article 1 of Commission Implementing Regulation (EU) 2015/2011 or;
there is a guarantee for the bond of the entity provided by one of the counterparties mentioned in points (a) to (d) of Article 180(2) of the Delegated Regulation (EU) 2015/35 or by an entity listed in Article 1 of Commission Implementing Regulation (EU) 2015/2011, and the guarantee is full, unconditional and irrevocable and meets the requirements set out in Article 215 of the Delegated Regulation (EU) 2015/35.
EIOPA did not assess whether CADES falls in one of the criteria above at the time of publication of this Q&A.
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.
Similar Q&As
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.