On the 11th February 2015 the MFSA issued a third circular providing guidance on preparatory measures that insurance and reinsurance undertakings should consider during this phase leading to full implementation of Solvency II in January 2016.
The circular addresses Solvency II reporting requirements during the preparatory phase. Annual reporting applies to re/insurance undertakings that represent at least 80% of the national market share and quarterly reporting applies to re/insurance undertakings that represent at least 50% of the national market share. Clear deadlines are indicated for these quantitative and narrative submissions.
For those undertakings falling within the above solo thresholds and who intend to use the XBRL tool ‘EIOPA T4U’ to generate the XBRL reporting, it is important to note that the MFSA circular provides the link to access the beta version of the tool.
None of the local groups are required to submit group reporting during the preparatory phase as they do not exceed the threshold of Euro 12 billion total assets established by EIOPA. However, the circular offers important guidance on reporting for different group structures under Solvency II with effect from 2016.
Last, but not least, the MFSA has provided an illustration of the calculation of Restricted Own Funds under the new tiering of Own Funds structure of Solvency II.
The full text of the circular may be accessed by clicking here.