ESRB on climate scenarios for EIOPA’s stress test
  • Monday, 23 May 2022

ESRB on climate scenarios for EIOPA’s stress test

The European Systemic Risk Board (ESRB) provided the narrative for this year’s pension funds stress test exercise conducted by EIOPA. The climate risk scenario was developed together with the European Central Bank and relies on an abrupt carbon price increase leading to high transition risk. The shocks are calibrated using the National Institute Global Econometric […]

Read More
EIOPA consults on draft Guidelines on integrating customer’s sustainability preferences
  • Monday, 23 May 2022

EIOPA consults on draft Guidelines on integrating customer’s sustainability preferences

The European Insurance and Occupational Pension Authority (EIOPA) has launched a public consultation on draft Guidelines on integrating customer’s sustainability preferences in the suitability assessment under the Insurance Distribution Directive (IDD). With the Guidelines, EIOPA aims to: promote a coherent application of the Delegated Regulation; restrict potential mis-selling of insurance products with regard to sustainability […]

Read More
EIOPA finalises revision of guidelines on contract boundaries and the valuation of technical provisions
  • Thursday, 19 May 2022

EIOPA finalises revision of guidelines on contract boundaries and the valuation of technical provisions

EIOPA has published two reports on the revision of the EIOPA Guidelines on contract boundaries and Guidelines on the valuation of technical provisions. Since 2019, EIOPA noticed divergent practices in the valuation of technical provisions and therefore felt the need to analyse and improve the consistency of the calculation method. To achieve this, a two […]

Read More
ESMA responds to European Commission consultation on EMIR review
  • Monday, 16 May 2022

ESMA responds to European Commission consultation on EMIR review

The European Securities and Markets Authority (ESMA) has written to the European Commission (EC) providing its high-level response to the consultation on a targeted review of European Market Infrastructure Regulation (EMIR) with respect to the European Union (EU) central clearing framework. In the response, ESMA recommends to: increase the attractiveness of cleared EU markets, e.g. […]

Read More
EBA publishes final draft technical standards on PDs and LGDs for default risk model under the FRTB’s IMA
  • Monday, 16 May 2022

EBA publishes final draft technical standards on PDs and LGDs for default risk model under the FRTB’s IMA

The European Banking Authority (EBA) published its final standards on probabilities of default (PD) and loss given default (LGD) for institutions using the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). One of the requirements to be met under the internal default risk model entails institutions being capable of […]

Read More