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EIOPA-BoS-16/214

30 September 2016

EIOPA Board of Supervisors Meeting

29-30 September 2016

Approved Deliberations and Conclusions

Chairman: Gabriel Bernardino

Members and Observers:

Voting: AT: Peter Braumüller, BE: Jean Hilgers, BG: Karina Karaivanova, CY: Nicos Koullapis, CZ: David Rozumek, DE:

Frank Grund, DK: Jan Parner, EE: Kilvar Kessler, ES: Francisco Carrasco Bahamonde, FI: Teija Korpiaho, FR: Sandrine Lemery,

HR: Pierre Matek, GR: Ioanna Seliniotaki, HU: Ferenc Szebelédi, IE: Sylvia Cronin, IT: Alberto Corinti, LT: Vytautas Valvonis,

LU: Claude Wirion, LV: Dina Mikelsone, MT: Marianne Scicluna, NL: Thijs van Woerden, PL: Damian Jaworski, PT: José Almaça,

RO: Mişu Negriţoiu, SK: Julia Cillikova, SI: Mojca Piškurić, SE: Martin Noréus, UK: David Rule

Non-voting: BE: Dominik Smoniewski, Henk Becquaert, DE: Thomas Schmitz-Lippert, IS: Runar Gudmundsson, IE:

Brendan Kennedy, IT: Alessia Angelilli, Raffaele Capuano, LI: Alexander Imhof, LU: Annick Felten, NL: Olaf Sleijpen, NO: Emil Steffensen, PL: Mariusz Smętek, PT: Mario Ribeiro, SI: Mojca Piscuric, UK: Fiona Frobisher, COM: Nathalie Berger, Philippe Caluwaerts, EBA: Anne Tiedemann, ESMA: Mette Sicard Filtenborg, ESRB: Francesco Mazzafero

Experts:

AT: Gerlinde Taurer, CZ: Jaroslav Kovanda, DE: Petra Faber-Graw (PoA), FR: Emilie Quema, HU: Beatrix Denes, IE: Mary

Burke, MT: Karen Xuereb, RO: Raluca Ţariuc, RO: Radu Petrescu, SK: Matus Medvek, UK: Fiona Rogers

EIOPA Staff:

Fausto Parente (EIOPA Executive Director), Manuela Zweimüller (EIOPA Head of Regulations), Patrick Hoedjes (EIOPA Head of Operations and Oversight), Susanne Rosenbaum, Catherine Coucke (Legal), Sophia Milili-Makrydakis, Ineta Galubicke, Petr Jakubik (item 3), Dora Iltcheva (item 4), Phil Codrai (item 5), Ivo Karshev (item 6), Carlos Guine (items 7, 16), Justin Wray (items 8, 9, 10, 13, 15, 16), Camille Graciani (item 8), Sandra Hack (item 9), Frederik Vandenweghe (item 9), Carine Pilot-Osborn (item 10), Pamela Schuermans (item 8, 15), Dimitris Zafeiris (items 15, 17, 18), Daniel Perez (item 11, 12), Andrew Candland (item 12), Louis De Louvencourt (item 12), Vesa Ronkainen (item 12), Lars Dieckhoff (item 13), Juan Zschiesche (items 17, 18), Philip Kitzmantel (item 19), Katja Wuertz (item 20), Jan-Ole Wagner (item 20)

Welcome and introductory remarks by the EIOPA Chairman

Information

1. Adoption of the Agenda Decision by SMV1

Conclusions: BoS adopted the agenda.

Action points: Not applicable

2. Update by Chairman, Executive Director and COM

Information

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Conclusions: Not applicable

Action points: Not applicable

3. Update by Chair of IPC and Chair of RFSC Information

Voting Results: Not applicable

Written Procedure: Not applicable

Conclusions:

• Members welcomed the updates by the Chairs of the Steering Committees. The proposal was made to further detail in BoS documents (in particular, in accompanying cover notes), the position of the IPC and RFSC or the nature of the discussion on the

topic.

Action points:

Steering Committees to seek to include reference to the Steering Committee’s conclusions in the draft cover notes accompanying the documents that are

being submitted to the BoS.

4. Election of Review Panel Chair Decision by SMV1

Conclusions:

• BoS re-elected Damian Jaworski as the Review Panel Chair.

Action points:

Not applicable

5. Single Programming Document (SPD) 2017-2019

Decision by SMV1

Conclusions:

BoS adopted the SPD 2017-2019 with the following conditions: outcome of the

discussions in September BoS to be reflected; amendments and clarifications requested during the meeting to be included; BoS views on prioritisation shared in writing to be considered during the revision of the AWP 2017 once the

resource allocation is finally confirmed.

Action points:

EIOPA to implement amendments discussed during BoS.

EIOPA to send SPD 2017-2019 to EU Institutions.

BoS to provide written comments to inform revision of AWP 2017 once resource

allocation is known.

EIOPA to submit to BoS revised AWP 2017 in first quarter 2017.

6. Rules on Professional secrecy (Proposed amendments)

Discussion

Conclusions:

The BoS supported the importance of respecting confidentiality and integrating

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it in the professional secrecy decision for non-staff (PSD). The Board insisted on the importance of having common provisions for the 3 European Supervisory Authorities (ESAs).

Further work is required to clarify more in particular the legal basis for the extension of scope to National Competent Authorities’ (NCAs) representatives in

EIOPA’s working structures and the exemptions cases. An explanatory note should be presented to the Board.

Action points:

• BoS to provide concrete drafting suggestions on the PSD in relation to their comments by 7 October 2016.

7. IAIS ExCo candidates Decision by SMV1

Conclusions:

Frank Grund/DE Bafin, Sandrine Lemery/FR ACPR, Victoria Saporta/UK BoE-PRA were re-elected, by simple majority, to represent the Western European Region in IAIS ExCo.

For the Central and Eastern European Region, Damian Jaworski is supported by the BoS to represent the Region.

Action points:

EIOPA to communicate the above outcome to the IAIS Secretariat in the course of October.

8. SCR review: EIOPA’s work following Call for Advice

Decision by SMV1

Conclusions:

BoS adopted SCR Review Project Group Sovereign risk report (EIOPA-BoS-16/213, 29 September 2016).

BoS agreed with the project plan and with the possibility to revise the part of the advice sent in October 2017, in light of evidence by February 2018.

The BoS agreed on the scope and prioritisation of the project.

The BoS agreed that IPC is mandated to prepare a time table and planning on

next steps on sovereign risk.

Action points:

EIOPA to prepare public communication on the scope and timetable of the SCR

review.

IPC to prepare a time table and steps to enable EIOPA to contribute to the

discussion on sovereign risk.

9. 2016 Market development report on occupational pensions and cross-border IORPs

Decision by SMV1

Conclusions:

Members to provide their final data input by 5 October 2016.

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Action points:

EIOPA to launch a written procedure for the approval of the ‘2016 market development report on occupational pension and cross-border IORPs’ after

amending the report for final data.

10. Final Reports on Peer Review regarding IORP

Statement of Investment Policy Principles

(SIPP)

Decision by SMV1

Conclusions: The BoS adopted the Final Report on the Peer Review of the Statement

of Investment Policy Principles for IORPs and (Internal Version for BoS) (EIOPA-BoS-

16-169, 4 August 2016) and the Peer Review of the Statement of Investment Policy

Principles for IORPs Publication of Outcomes (EIOPA-BoS-16-170, 4 August 2016).

Action points:

EIOPA to follow up with the NCAs on the three recommendations outlined in

section 2.3 of the Publication of Outcomes.

EIOPA to consider the three recommended actions outlined in section 5.2 of the

Publication of Outcomes for further work and come back to the BoS in due course with a concrete action plan in the context of promoting a consistent approach to the implementation of the IORPII Directive.

11. Stress Test:

11.1. Insurance Stress-Test 2016: Update

11.2. IORP Stress Test 2017: First thoughts

Information

Discussion

11.1. Insurance Stress-Test 2016: Update

Conclusions:

• BoS supported the work done so far and underlined the need for an early discussion on the findings and communication plan in the BoS.

Action points:

Not applicable

11.2. IORP Stress Test 2017: First thoughts

Conclusions:

BoS supported the proposal to establish a new Stress Test Project Group (ST

PG) under the Risk and Financial Stability Committee (RFSC) and launch the 2nd IORP Stress Test exercise in 2017.

Action points:

EIOPA to launch the procedure for the creation of a new PG and work on a draft roadmap for the IORP 2017 ST to be presented in the November Board of

Supervisors meeting.

12. Internal Models:

12.1. Report on the consistency of internal

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model approvals

12.2. Internal model consistency projects

Decision by SMV1

Discussion

Conclusions:

BoS approved the Report on Consistency of IM approvals (EIOPA-BoS-16-199,

29 September 2016)

The project status updates were noted and the steering was to keep the scope

of the VA project unchanged.

BoS Members recommended EIOPA to use the information on new group internal model applications available already to EIOPA via the colleges.

Information on solo internal models outside cross-border groups, should be reported to EIOPA by the responsible NSAs, e.g. through the Expert Network 4.

Action points:

EIOPA to implement the steering.

13. RFR:

13.1. Report on DLT assessment

13.2. Ultimate forward rate

Decision by SMV1

Discussion

13.1. Report on DLT assessment

Conclusions:

BoS adopted the report on the DLT assessment in 2016 (EIOPA-BOS-16/172).

Action points:

EIOPA to implement the changes to the use of relevant financial instruments set out in the report for the calculation of risk-free interest rates of 31 December 2016.

RFR project group to provide report on DLT assessment for Swiss franc for the BoS meeting in November 2016.

RFR project group to report on review of process of DLT assessments for BoS meeting in January 2017.

13.2. Ultimate forward rate

Conclusions:

BoS Members agreed to proceed with the UFR methodology.

EIOPA will carry out additional impact analysis.

Decision on UFR methodology to be taken in January 2017.

Action points:

Members invited to send input to issues of the discussion paper by 7 October

2016.

Results of additional impact analysis and proposal on UFR methodology to be

submitted to BoS meeting in January 2017.

14. Closed Session Confidential

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exchange of information

Conclusions:

Not applicable

Action points:

Not applicable

15. Q&A process - proposals for review Decision by SMV1

Conclusions:

BoS adopted by simple majority voting the proposals for the Q&A process included in the Cover note (EIOPA-BoS-16/184, 14 September

2016).

It was agreed to implement the proposals, with the following changes to

the process flow.

Irrelevant questions (category 3) to be specified in the process flow as not

being published.

Expert Networks will be afforded the opportunity to review all non-editorial

revised responses to questions prior to the responses being finalised, up to including questions which went to the IPC and were amended by it (the latter will be sent back to the ENW for fatal flaw check before submitting to the BoS).

If 1/3 of BoS Members objected to a question, the process would be clarified as to what then happened.

• NCAs were encouraged also to use the Q&A process.

Action points:

• EIOPA to amend the process flow according to the conclusions and to publish on

the EIOPA extranet.

16. International Capital Standards (ICS): strategic

note

Decision by SMV1

Conclusions:

BoS adopted International Capital Standard: Strategic Approach (EIOPA-BOS-16/177, 30 September 2016) with the proposed changes.

BoS discussed, regarding the approach to ICS1.0, how convergence could be

achieved and that it approved that, going forward, two separate valuations should be compared in such a way to objectively identify existing differences. Then, a prioritisation needs to be carried out to address main differences. BoS

confirmed that convergence is needed to be reflected already for ICS1.0.

Action points:

Not applicable

17. EIOPA’s work on Recovery & Resolution Decision by SMV1

Conclusions:

The BoS generally agreed with the work and approach followed and invited the

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Project Group to take into account the comments made in light of the upcoming discussion in November.

Action points:

Project Group on Recovery and Resolution to take into account the comments received and to finalise the consultation document for the next BoS meeting in

November.

18. Project initiation: EIOPA Macroprudential stance Decision by SMV1

Conclusions:

• BoS adopted the proposal contained in Developing Macroprudential Policy for

Insurance (EIOPA-BoS-16-205, 5 September 2016).

The BoS supported the creation of the new RFSC Project Group (PG) and highlighted the need to avoid overlaps with other existing working groups.

Action points:

EIOPA to launch the procedure for the creation of a new PG and work on a

revised mandate of the RFSC to be proposed to the Board of Supervisors.

19. Update on IT developments Information

Conclusions:

• The BoS took note of the progress report.

Action points:

EIOPA to publish common data submission mistakes on its website to help the industry in improving their software products and reports.

EIOPA to continue to provide regular reports to the BoS.

20. Revised EIOPA procedures for issuing warnings,

temporary prohibitions and restrictions

Discussion

Conclusions: The specific measures to be applied to PRIIP’s should not make

reference to NCAs as addressees. The current procedures from 2012 stemming from Art. 9 of the EIOPA Regulation will be maintained. (NCAs can be addressees of bans

under the emergency procedure and warnings, whilst this is not the case for bans under the PRIIPs Regulation). Moreover, further guidance is to be produced by the CCPFI before year end in particular on the criteria used for the identification of the

type of products on which monitoring should be undertaken and shared at EIOPA level. Finally, the procedures, once adopted, will not be published but appropriate

communication without full internal details will be provided to the public in due course.

Action points: Not applicable

21. AOB Information

Conclusions:

• Next BoS meeting is on 29-30 November.

Action points:

Not applicable

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1: Decision by simple majority (Article 44(1) 1st para. EIOPA Regulation)

2: Decision by qualified majority (Article 44(1) 2nd para. EIOPA Regulation)