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: https://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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Stakes raised for UK bond, EU derivatives tapes after Ediphy clinches win
The pressure is on for TransFICC, Etrading, Finbourne, and Propellant Digital, who are still vying to provide the UK’s fixed income consolidated tape after Esma awarded the EU’s tape to Ediphy and its partners.
Doing a deal? Prioritize info security early
Engaging information security teams early in licensing deals can deliver better results and catch potential issues. Neglecting them can cause delays and disruption, writes Devexperts’ Heetesh Rawal in this op-ed.
SEC pulls rulemaking proposals in bid for course correction
The regulator withdrew 14 Gensler-era proposals, including the controversial predictive data analytics proposal.
Trading venues seen as easiest targets for Esma supervision
Platforms do not pose systemic risks for member states and are already subject to consistent rules.
The Consolidated Audit Trail faces an uncertain fate—yet again
Waters Wrap: The CAT is up and running, but with a conservative SEC in place and renewed pressure from politicians and exchanges, Anthony says the controversial database faces a death by a thousand cuts.
Exchanges plead with SEC to trim CAT reporting requirements
Letters from Cboe, Nasdaq and NYSE ask that the new Atkins administration reduce the amount of data required for the Consolidated Audit Trail, and scrap options data collection entirely.
EU banks want the cloud closer to home amid tariff wars
Fears over US executive orders have prompted new approaches to critical third-party risk management.
Friendly fire? Nasdaq squeezes MTF competitors with steep fee increase
The stock exchange almost tripled the prices of some datasets for multilateral trading facilities, with sources saying the move is the latest effort by exchanges to offset declining trading revenues.