Golden Copy: Wishing You a Solvent Summer
As summer begins, the effectiveness of Solvency II regulation will play out
With the US Memorial Day weekend (and UK spring bank holiday) nearly upon us, marking the start of summer and reminding us that we're nearly at the halfway point of 2016 (already!), let's take a quick look at progress toward Solvency II compliance before putting work aside.
Since Solvency II, the European directive for capital adequacy in the insurance industry, took effect at the start of this year, with reporting of data to the authorities begun in April, it might seem like the work is complete. That's not exactly the case.
Henderson Global Investors, which has £92.7 billion ($142.1 billion) in assets under management, began testing Solvency II templates in October, and is still working on adjustments to improve the accuracy of the data.
Having seen several regulation and standards efforts be implemented over the years, it's par for the course that even after a deadline date—whether for the regulation taking effect, or for actual reporting to take place—no regulator is going to show up with a SWAT team to catch problems on day one. Mainly, they want to see that firms' efforts are in place. The dates are guidelines for firms to know that they should be ready for inspections or audits under the regulation by a certain time.
One question about Solvency II, since reporting has now started, is whether it will be effective in its stated goal of ensuring capital adequacy through more complete and accurate reporting.
As Solvency II is also relevant for financial firms outside of the insurance sector, another question for those firms that have invested resources in ensuring compliance – as noted in this column in December – is whether there are synergies to be had with data compliance efforts that still have to be done for MiFIR and other upcoming regulations.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
As crypto ETFs become reality, benchmark providers take center stage
The SEC’s approval of the first spot bitcoin ETFs will expose a growing number of traditional market participants to the maturing world of crypto data, a moment that some—such as CF Benchmarks, BlackRock’s benchmark provider—have been eagerly awaiting.
Waters Wavelength Podcast: Looking into the EU regulatory landscape
Eflow’s Ben Parker joins the podcast to discuss EU regulations.
FCA declines to directly regulate market data prices
A year-long investigation by the UK regulator to determine whether competition is hindered in the wholesale data markets has concluded with its decision not to directly regulate much-maligned data pricing and licensing structures.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Dark horse: Deutsche Börse building dark pool