Document ID: 32015R2017

Reference:
12.11.2015
EN
Official Journal of the European Union
L 295/21
COMMISSION IMPLEMENTING REGULATION (EU) 2015/2017
of 11 November 2015
laying down implementing technical standards with regard to the adjusted factors to calculate the capital requirement for currency risk for currencies pegged to the euro in accordance with Directive 2009/138/EC of the European Parliament and of the Council
(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II) (1), and in particular Article 109a(2)(c) thereof,
Whereas:
(1)
The adjustments laid down in this Regulation take into account the detailed criteria set out in Article 188(5) of Commission Delegated Regulation (EU) 2015/35 (2).
(2)
In order to ensure a consistent treatment of currencies pegged to the euro in the calculation of the capital requirement for currency risk, adjusted factors should be provided for the currency risk relating to the exchange rates between the euro and currencies pegged to the euro as well as in relation to the exchange rates between two currencies pegged to the euro.
(3)
This Regulation is based on the draft implementing technical standards submitted by the European Insurance and Occupational Pensions Authority to the Commission.
(4)
The European Insurance and Occupational Pensions Authority has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Insurance and Reinsurance Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council (3),
HAS ADOPTED THIS REGULATION:
Article 1
Adjusted factors for currency risk where the local or foreign currency is the euro
Where the local or foreign currency is the euro, for the purposes of Article 188(3) and (4) of Delegated Regulation (EU) 2015/35, the 25 % factor is replaced by:
(a)
0,39 % where the other currency is the Danish krone (DKK);
(b)
1,81 % where the other currency is the lev (BGN);
(c)
2,18 % where the other currency is the West African CFA franc (BCEAO) (XOF);
(d)
1,96 % where the other currency is the Central African CFA franc (BEAC) (XAF);
(e)
2,00 % where the other currency is the Comorian franc (KMF).
Article 2
Adjusted factors for currency risk where the local and the foreign currency are pegged to the euro
For the purposes of Article 188(3) and (4) of Delegated Regulation (EU) 2015/35, the 25 % factor is replaced by:
(a)
2,24 % where the two currencies are the DKK and the BGN;
(b)
2,62 % where the two currencies are the DKK and the XOF;
(c)
2,40 % where the two currencies are the DKK and the XAF;
(d)
2,44 % where the two currencies are the DKK and the KMF;
(e)
4,06 % where the two currencies are the BGN and the XOF;
(f)
3,85 % where the two currencies are the BGN and the XAF;
(g)
3,89 % where the two currencies are the BGN and the KMF;
(h)
4,23 % where the two currencies are the XOF and the XAF;
(i)
4,27 % where the two currencies are the XOF and the KMF;
(j)
4,04 % where the two currencies are the XAF and the KMF.
Article 3
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 11 November 2015.
For the Commission
The President
Jean-Claude JUNCKER
(1)  OJ L 335, 17.12.2009, p. 1.
(2)  Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 12, 17.1.2015, p. 1).
(3)  Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).

Summary:
Calculating the capital requirement for currency risk for currencies pegged to the euro
Calculating the capital requirement for currency risk for currencies pegged to the euro
SUMMARY OF:
Regulation (EU) 2015/2017 — technical standards with regard to the adjusted factors to calculate the capital requirement for currency risk for currencies pegged to the euro in accordance with the Solvency 2 Directive
WHAT IS THE AIM OF THE REGULATION?
              
It sets out the capital requirements for currencies pegged to the euro.
KEY POINTS
              
Directive 2009/138/EC, known as the Solvency 2 Directive, requires insurance companies to have enough own funds to withstand significant financial difficulties by meeting certain capital requirements.
Commission Delegated Regulation (EU) 2015/35 spells out these requirements in greater detail. In particular, insurance companies must have sufficient funds to cover any loss they may experience from either a 25% increase or decrease in the value of a foreign currency against the local currency.
This regulation, Commission Implementing Regulation (EU) 2015/2017:
replaces the 25% factor by lower percentages, ranging from 0.39% to 4.27%;
contains the adjusted factors for currency risk where the local or foreign currency is the euro, or is pegged to the euro;
applies to the Danish krone, the Bulgarian lev, the West African and Central African CFA francs and the Comorian franc.
FROM WHEN DOES THE REGULATION APPLY?
              
It applies from 2 December 2015.
BACKGROUND
              
The European Insurance and Occupational Pensions Authority (EIOPA) supports coordination between national authorities and contributes to ensuring the consistent application of EU laws for the insurance and occupational pension sectors in EU countries.
EIOPA consulted widely on the technical standards contained in the regulation, analysing the potential related costs and benefits and presented its proposal to the European Commission for adoption.
For more information, see:
Risk management and supervision of insurance companies (Solvency 2) (European Commission)
Solvency II (European Insurance and Occupational Pensions Authority).
MAIN DOCUMENT
            
Commission Implementing Regulation (EU) 2015/2017 of 11 November 2015 laying down implementing technical standards with regard to the adjusted factors to calculate the capital requirement for currency risk for currencies pegged to the euro in accordance with Directive 2009/138/EC of the European Parliament and of the Council (OJ L 295, 12.11.2015, pp. 21-22)
RELATED DOCUMENTS
            
Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 12, 17.1.2015, pp. 1-797)
Successive amendments to Regulation (EU) 2015/35 have been incorporated into the basic text. This consolidated version is of documentary value only.
Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, pp. 48-83)
See consolidated version.
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (OJ L 335, 17.12.2009, pp. 1-155)
See consolidated version.
last update 09.02.2018