CELEX: 51992PC0252
Language: en
Date: 1992-06-04
Title: Re-examined proposal for a THIRD COUNCIL DIRECTIVE on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      C0M(92)252  final - SYN291
                                                      Brussels, 4 June 1992
                                     Re-examined proposal for a
                                      THIRD COUNCIL DIRECTIVE
                              on the coordination of laws, regulations
                    and administrative provisions relating to direct insurance
                         other than life assurance and amending Directives
                                     73/239/EEC and 88/357/EEC
                     (presented by the Commission pursuant to Article 149.2(d)
                                         of the EEC treaty)
._ji—WBaaasas!
 ---pagebreak---                             EXPLANATORY MEMORANDUM
On 25 February 1992, the Council adopted a comnv:>n position wi.lch took over
the text of the amended proposal of 24 February 1992^ 1 ) for a third
Council Directive on the coordination of laws, regulations and
administrative provisions relating to direct insurance other than Life
assurance and amending Directives 73/239/EEC and 88/357/EEC.
On 13 May 1992, the Parliament approved the common position and proposed one
amendment in order to clarify that the admissibility of cumulative
preferential shares and subordinated loans in the solvency margin is a
Member State option.
This solution was also adopted in the directive on a definition of own funds
for credit  institutions and was approved by unanimity at the time of
adoption of the common position. Unfortunately, the drafting of this point
remains ambiguous.
The Commission entirely supports parliament's objective and thus proposes to
amend in Article 16 of Directive 73/239/EEC, as modified by Article 24 of
the present directive, the introductory sentence of the seventh indent of
paragraph 1.
(1)  COM (92) 63 final SYN 291. O.J. C 93 of 13 April 1992, p. 1
 ---pagebreak---                                          PROVISION
In Article 24, the introductory sentence to the 7th indent of paragraph 1 of
Article 18 of Directive 73/239/EEC is replaced by the following :
"- cumulative    preferential     share  capital    and suherdinated     lean capital    may
he Included    Put,  If  so,  anly  up to 50 X of the margin,       no more than 25 X ef
welt*    shell eenslst   ef suherdinated     leans   with  a fixed  maturity    of    fixed-
term cumulatIve     preferential    share  capital,     if the following    minimum
criteria    are met ."
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(92) 252 final
                                                      DOCUMENTS
EN                                                                          10 06
                                Catalogue number: CB-CO-92-262-EN-C
                                                             ISBN 92-77-44998-5
Office for Official Publications of the European Communities
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