PCS filed its response to EIOPA’s disappointing consultation on a possible reform of the capital requirements for insurance companies investing in securitisations. The response may be found here. The consultation was, in our view, a major disappointment. EIOPA’s preliminary conclusions – underlined by their statements at a public roundtable attended by PCS – were that the current framework was “fit for purpose”. For all the reasons set out in our response, PCS feels that this is not borne out by the facts and that the assertion itself as set out in EIOPA’s consultation document feels more like an “act of […]

The Cinderella Regulation - EIOPA launches a consultation on Solvency II capital

We have previously referred to the issue of capital calibration for securitisations purchased by insurance undertaking as the "Cinderella issue". Of all the issues on which the European Commission has asked the ESA's to provide advice, it is both the least noticed and yet, in our view, the most important of the unfinished reforms begun with the passing of the Securitisation Regulation. Today, insurance companies are holding a minuscule percentage of securitisations in their books - just above 2%. Their holdings of high quality STS securitisations are in homeopathic amounts at around 0.05%. Yet, if we are to see a […]

Three regulatory publications for Christmas...but no gold, frankincense or myrrh for securitisation.

Following the publications by the European Banking Authority of their report to the Commission regarding the definition of high quality liquid assets and by the Basel Committee of its new consultation on the capital weightings for bank holdings of securitisation, EIOPA published on December 19th its report on capital requirements for insurance companies under Solvency II. This last document (to be found here) represents a very mixed result for securitisation. On the one hand, following a request from the European Commission to revisit it original proposals, EIOPA has sought - in the new document - to define a category of […]

PCS files its response to EIOPA’s consultation

The Cinderella Regulation - EIOPA launches a consultation on Solvency II capital

Three regulatory publications for Christmas...but no gold, frankincense or myrrh for securitisation.