Clifford Chance
Solvency II Update
12 January 2012
Since our last Solvency II client briefing in July 2011, there have been a number of developments in relation to the implementation of the Solvency II Level 1 Directive. This briefing provides an update on these developments and a discussion of the key outstanding issues and expected next stages in the implementation process. Key points to note are:
(a) it now looks very likely that the Solvency II requirements will come into force for firms on 1 January 2014 (although this is subject to the Omnibus II Directive being agreed and adopted);
(b) during 2013 it is likely that firms will be required to prepare implementation plans and may be able to apply some Solvency II requirements;
(c) the Level 2 delegated acts have not yet been made publicly available, but draft versions of these level 2 measures have been shared and consulted on with various industry participants;
(d) there have been recent developments in some areas including third country equivalence, reporting and disclosure;
(e) there remain a number of outstanding issues which are still being negotiated at EU level;
(f) the FSA have released two consultation papers on proposed changes to the FSA Handbook relating to Solvency II - CP11/22 and CP 11/23; and
(g) HM Treasury has released a consultation paper on proposed changes to UK legislation relating to Solvency II.
