Answers to the European Commission on the ... - Eiopa - Europa

new structure would need <strong>to</strong> be defined clearly. The FCD provisions on
defining relevant competent authorities could provide a useful starting
point in this respect. CEIOPS will consider this issue, and especially <strong>the</strong>
analysis in paras. 18.68-18.72, fur<strong>the</strong>r in its answer <strong>to</strong> CfA 20 (cooperation
between supervisory authorities 141 ).
Information provided by groups
18.74 CEIOPS considers that <strong>the</strong> harmonisation or at least convergence of
reporting by solo entities would be desirable, as this would provide for
a better comparability of risk profiles of <strong>the</strong> solo entities within a group.
In <strong>the</strong> banking sec<strong>to</strong>r, several projects aiming at <strong>the</strong> harmonisation of
reporting have been launched.
18.75 Allowing <strong>the</strong> group <strong>to</strong> report <strong>the</strong> required information by providing one
integrated main report could be very efficient both for <strong>the</strong> group and
<strong>the</strong> supervisors. It would provide a good insight in<strong>to</strong> <strong>the</strong> group and its
constituent parts, and give a good overview of intra-group transactions
and of possible risk concentration. However, special supervisory
concerns may require Member States’ supervisory authorities <strong>to</strong> be
entitled <strong>to</strong> collect additional data or information from <strong>the</strong> supervised
entities.
18.76 CEIOPS will fur<strong>the</strong>r consider <strong>the</strong>se issues in its answer <strong>to</strong> CfA 21
(Supervisory reporting and disclosure).
CEIOPS’ Advice
18.77 CEIOPS advises that <strong>the</strong> Framework Directive should include explicit
provisions on <strong>the</strong> supplementary supervision of groups, since most
decisions on risk management, internal controls and <strong>the</strong> use of internal
models are often taken by <strong>the</strong> parents of groups.
18.78 CEIOPS advises that <strong>the</strong> Solvency II framework should include fur<strong>the</strong>r
supplementary high-level aspects on Supervisory Review Process for
groups. This is in addition <strong>to</strong> CEIOPS’ recommendation in its answer
<strong>to</strong> CfA 2.
18.79 For <strong>the</strong>se purposes, CEIOPS recommends <strong>to</strong> follow <strong>the</strong> spirit of <strong>the</strong>
FCD so as <strong>to</strong> explicitly define insurance groups in <strong>the</strong> future
framework.
18.80 Supplementary supervision at group level should not imply that
supervisors should necessarily directly supervise holding companies on
a stand-alone basis 142 . In this regard, supplementary supervision
should be defined in a uniform way so as not <strong>to</strong> distinguish between
<strong>the</strong> various legal forms of <strong>the</strong> parent undertaking (e.g. whe<strong>the</strong>r <strong>the</strong>
parent of <strong>the</strong> insurance group is an insurance undertaking, holding
141 CEIOPS-CP-06/05.
142 Regarding this point, Article 5.5 and Art. 13 of <strong>the</strong> Directive 2002/87/EC might be taken as examples.
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