Insurance Companies Encouraged to Invest in Long-Term Equity by way of Capital Relief
Published 8 October 2021
Category: Investors Regulation
The EU Commission has published a proposal to amend the EU insurance directive (known as “Solvency II”) so that insurance companies can scale up long-term investments – see more here.
As part of the proposal, the EU Commission will introduce in 2022 technical changes to the criteria attached to the long-term equity category in the Solvency II Delegated Act by lowering the risk charges that are attached to insurance companies’ investment in long-term equity, including investment into alternative investment funds.
According to a press release issued by the EU Commission, it is expected the reduction in capital requirements would reach approximately EUR 10.5 billion under a cautious scenario assuming that only 15% of additional equities would qualify as long-term. This would be a decrease of more than 6% compared to current levels for insurance companies which can be further invested in long-term equity.
Next Step: The amendments to the long-term equity category is expected to be adopted during 2022.
Tags: Solvency II
Also tagged ‘Solvency II’
Commission Adopts Changes to the Risk-Weight of Certain Alternative Investments (Solvency II)
An amendment to the delegated regulation (EU) 2015/35 was adopted by the European Commission 8 March 2019. The legislation includes changes to the risk-weight of certain alternative investments.
Risk ManagementSolvency IIVenture CapitalOther updates
Main recommendations from the report on advancing sustainable finance
The work performed by the Platform on Sustainable Finance has focused on developing technical criteria for new economic activities and reviewing activities included in the Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852.
SustainabilityThematic review of engagement information
The Danish Financial Supervisory Authority (the “DFSA”) has conducted a thematic review of six pension companies and investment managers and their engagement information (active ownership).
SFDRSustainabilityAn update on the stop-the-clock proposal and the ESRS simplification mandate
On 29 April 2025, a majority of the Danish Parliament agreed on the “stop-the-clock” directive which will go to a formal vote in the fall to adopt the proposal into Danish legislation.
CSDDDCSRDSustainabilityAIFMs: Marketing under increased regulatory focus
The Danish Financial Supervisory Authority (FSA) has published a thematic report on how managers of alternative investment funds and investment management companies market their investment funds.
KID / PRIIPSMarketingThe Danish FSAThe European Commission has launched a targeted consultation on obstacles to capital markets integration across the EU
The European Commission has launched a targeted consultation to gather feedback on obstacles to capital markets integration across the EU.
ComplianceCross-BorderThe Danish Parliament has adopted regulation to implement the NIS2 Directive and the CER Directive
On April 29, 2025, on the day where major parts of France, Spain, and Portugal suffered severe utility breakdowns, the Danish Parliament adopted the bills for implementing the NIS2 Directive and the CER Directive.
CERCritical SectorsCybersecurityNIS2