The European Commission said today the new timetable, which envisages a nine-month delay to July 2007 in the timing of the draft Solvency II directive, would also come under pressure if timely agreements cannot be found on certain so-called pillar 1 issues relating to technical provisions and capital requirements.
Itâs therefore crucial that there is no reopening of outside issues, which would risk lengthy discussions and renegotiations, said the Commission, the executive arm of the European Union and the body responsible for initiating financial regulation in the 25-nation EU bloc.
The Commission expressed its concerns in a note on a new roadmap for the complex Solvency II project which it sent to the European Insurance and Occupational Pensions Committee (EIOPC), the body of national government-level regulators that will help implement the regime under the so-called Lamfalussy financial rule-making process. It asked for comments from EIOPC members.
The Commission said the postponement reflects the extensive legal work needed for the new aim of consolidating the various Solvency II issues into one directive.