Clifford Chance

UPDATE: Solvency II Equivalence

19 June 2015

On 5 June 2015, the EU Commission adopted draft delegated acts on third country equivalence decisions under the Solvency II Directive.

Equivalence between third country jurisdictions and the EU can bring benefits - EU insurers can use local rules in equivalent jurisdictions to report on their operations in third countries, reinsurers based in an equivalent jurisdiction can be treated in the same way as European reinsurers and, depending on the waiver requirements of national competent authorities, EEA supervisors can rely on the group supervision of an equivalent third country.

This note discusses the recent equivalence decisions taken by the Commission and outlines some legal considerations for Solvency II group supervision where the ultimate parent undertaking of a group is located in an equivalent third country jurisdiction.

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